News

Russia's Ministry of Finance establishes penalties for virtual currency

Russia develops a bill establishing penalties for use and generation of virtual currency such as Bitcoin.

October 3, 2014

Lenta.ru, the Moscow-based online newspaper, is reporting that Russia's Ministry of Finance has now developed a bill that establishes penalties for using virtual currency such as Bitcoin and "money substitutes."

The published draft law indicates a series of penalties for the use and generation of virtual currency:

• 50,000 rubles for citizens ($1255)
• 100,000 rubles for officials ($2509)
• Up to 1 million rubles for companies ($25,090)

"Similar penalties may be established for individuals and companies who deliberately spread information that allows the issuing of money substitutes or transactions with them," Lenta.ru reports.

The proposed regulations and penalties apparently will not affect gamer currency or electronic money (e.g,, Webmoney).