Russia will “plant” for unregistered transactions with cryptocurrencies

Russia will “plant” for unregistered transactions with cryptocurrencies

According to the newspaper “Izvestia”, the Ministry of internal Affairs of Russia is considering the introduction of criminal liability for unregistered cryptocurrency transactions.

According to the documents, which have access to “Izvestia”, the Ministry of internal Affairs of Russia is drafting an amendment to the legislation, according to which all transactions with bitcoin and other cryptocurrencies need to be registered. The addition involves a “mandatory registration in the state bodies implementing financial and tax regulation” of all legal entities and individuals engaged in transactions with cryptocurrencies.

The initiative belongs to the General Department for drug control (GOKON). On 13 July the head of GOUKON Andrey Khrapov has addressed with the corresponding statement the Ministry of Finance of Russia .

The Ministry of economic development of Russia’s skeptical attitude towards the initiative of the Ministry of internal Affairs. Representatives of the Ministry declared that “too early” to criminalize unregistered transactions with cryptocurrencies. Deputy head of Ministry of economic development, Savva Shipov noted that while there is no legislation which would regulate cryptocurrency transactions.

However, Spikes said that individuals or organisations can be prosecuted in cases where cryptocurrencies were used as a means of payment for illegal activities such as trafficking in weapons or drugs.

Artem Tolkachev, legal expert and CEO of DLT Sputnik, endorsed the position of the Ministry of economic development. According to Tolkachev, “it is too early to talk about the criminalization of the illegal [undocumented] the crypto operations” because the industry is not was created the necessary legislation.

Tolkachev also said that while the crypto operation is in the “gray area” in Russia, and a number of Russian politicians and officials regularly make such initiatives are no direct legal basis for this does not exist yet.

At the same time, Tolkachev suggested that such initiatives will lead to the fact that cryptocurrency projects “will be moved to other jurisdictions” and said that that some of the major companies operating in the cryptocurrency sector, are already working “through foreign jurisdictions”:

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