Bitcoin Forum

Russia’s Ministry of Finance has announced proposals to ban the issuance of bitcoin and any operations involving cryptocurrency.

On Friday (1st August), the Finance Ministry announced on the government’s regulation website that it was drafting a bill relating to cryptocurrencies, which, if approved, will likely see those who break the new laws end up in jail.

The announcement said:

    “According to Article 27 of the Federal Law ‘On the Central Bank of the Russian Federation’ (Bank of Russia) the official Russian currency is ruble. The issuance of monetary surrogates in Russia is forbidden as well as the introduction of other monetary units. However, monetary surrogate has no standard definition in the Russian legislation.”

The Finance Ministry plans to make amendments to Article 27 of the Federal Law ‘On the Central Bank of the Russian Federation’, specifically banning the use of monetary surrogates, including cryptocurrencies. According to the ministry, the ban is necessary as monetary surrogates are widely used for buying illegal goods and money laundering.

Moreover, the government agency intends to restrict access to websites that enable people to buy, sell, transfer and use cryptocurrencies.

“Cryptocurrencies have no real value and their prices are determined due to speculations. So, there is a great risk that investors will lose their money,” the ministry’s statement concluded.