Russian authorities are cracking down on domestic crypto payments with a new bill that proposes steep penalties and asset seizures. The Ministry of Finance and the Central Bank have jointly submitted draft legislation that could see individuals fined up to 200,000 rubles and companies penalized up to 1 million rubles for using crypto within the country.
The legal director of the Russian Central Bank, Andrei Medvedev, stated that the bill formalizes existing restrictions and reinforces the state’s position that using digital assets for local payments is illegal. The proposed legislation adds a framework for enforcement, giving regulators the authority to confiscate any digital assets used in unauthorized transactions.
Despite Russia’s stance against using crypto for everyday transactions, the country has been using these assets for international trades to bypass Western sanctions. Russian regulators have warned industry participants not to assume crypto’s anonymity will protect them and allow them to break local laws. Olga Tisen, head of Rosfinmonitoring’s legal department, stated that exchanges operating in Russia routinely provide user data when requested by authorities. This aligns with global compliance standards, dispelling the common belief that crypto transactions are completely anonymous.
Russia is also cooperating with crypto exchanges, with Tisen citing Binance as an example of an exchange that interacts with Russian law enforcement. The country is increasing surveillance of digital assets while simultaneously working on plans to develop a national crypto exchange for high-net-worth individuals and cross-border settlements. The proposed exchange will operate under an experimental legal regime, allowing foreign trade participants to use digital assets in international deals.
Overall, Russia’s crackdown on domestic crypto payments highlights the government’s strict stance on the use of digital assets within the country. The proposed legislation aims to reinforce existing restrictions and enforce penalties for unauthorized transactions, showcasing the country’s efforts to regulate the crypto space while also exploring its potential for international trade.