Russia is preparing to take a tough stance against using cryptocurrencies as a form of payment. Under new legislation proposed by financial authorities, individuals and businesses could face fines of up to 1 million rubles — and also lose the crypto they used.

The bill aims to reinforce the ruble as the only legal currency in the country. Any attempt to replace it with Bitcoin or other digital assets will be treated as an administrative offense and punished accordingly.

💰 Thousands in Fines – and Crypto Confiscated

According to the draft law, co-authored by the Central Bank of Russia (CBR) and the Ministry of Finance, individuals using crypto for payments will face fines ranging from 100,000 to 200,000 rubles, while companies could be fined up to 1 million rubles (around $12,000).

CBR’s legal director Andrey Medvedev confirmed the penalties will be integrated into the national code of administrative offenses. But the most painful part, he emphasized, will be the confiscation of any cryptocurrency used in a transaction.

“Seizing illegally used digital currencies will be the most painful consequence,” Medvedev said at a legal forum in St. Petersburg.

⚖️ Crypto Recognized as Property for Seizure

The Russian government previously approved legal changes allowing the confiscation of cryptocurrencies as property in criminal proceedings. These amendments are now moving to parliamentary review in the State Duma.

The CBR maintains a strict stance: crypto is not permitted as a means of payment within Russia. Officials refer to the "Law on Digital Financial Assets," which explicitly restricts such use.

🌍 Crypto Only for Foreign Trade?

Interestingly, the government is exploring crypto’s use in cross-border trade. Under pressure from Western sanctions, Russia is searching for alternatives to traditional bank transfers. In March, the central bank proposed an “experimental legal regime” (ELR) to allow selected firms and accredited investors to use crypto in international transactions.

“No crypto for domestic payments — but maybe for foreign trade,” best summarizes the CBR’s position.

CBR Governor Elvira Nabiullina also noted the bank is open to allowing crypto investments by a limited number of qualified market participants — but regular crypto payments between citizens will remain strictly prohibited.

💬 Is Russia strengthening the ruble — or simply trying to control what it can no longer ignore?




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