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Central Bank Rejects Bitcoin Monitoring Mission Proposed by Finance Ministry
6.10.2014 14:14
Central Bank Rejects Bitcoin Monitoring Mission Proposed by Finance Ministry
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The Central Bank will not engage in web surveillance for potential use or issue of cryptocurrencies, according to a statement by the press service.

      The new function, i.e. monitoring the Internet and punishing those engaged in distribution of cryptocurrencies like bitcoin, runs counter to the official mission of the Bank of Russia, the Central Bank was quoted by the news agency RIA as saying.

      The Central Bank is working together with the Finance Ministry to improve the bill, it added.

      Earlier, Russia-IC reported that Russia may soon put a lid on transactions involving cryptocurrencies. The Finance Ministry has drafted a bill that reflects a growing global trend towards tighter regulation of the new financial phenomenon.

      Cryptocurrencies, otherwise known as virtual or digital currencies, are a medium of exchange using cryptography to secure the transactions and to control the creation of new units. The first cryptocurrency to be created was Bitcoin in 2009.

      Until recently, bitcoins and other digital currencies were considered to be perfectly legal but the legislation sponsored by the Finance Ministry is supposed to outlaw any alternative currencies defined as monetary surrogates.

      The most interesting part of the new bill is the fines introduced to enforce the act – starting from 5,000 and going way up to 1 million roubles.

      Transactions would be considered a minor crime, with individuals facing between 5,000 and 50,000 roubles in fines, officials would be liable to pay out up to 100,000 roubles while enterprises would have to cough up between 500,000 and 1 million. Apparently, the large fine for enterprises to supposed to spook them from accepting bitcoins as a means of payment, something they’ve been eager to do to attract the millennials.

      Mining and distribution of software allowing to mine bitcoins and other digital currencies would make you liable for a fine of up to 50,000 roubles while officials and companies would have to splurge up to 100,000 and 1 million roubles, respectively.


Author: Mikhail Vesely


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