Proposed Punishment for Using Bitcoin in Russia Raised to 4 Years of Labor

The Russian Ministry of Finance has reportedly raised its proposed penalties for using Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term in the country.

Members of organized groups, such as businesses, that are caught violating the proposed ban can face 4 years of correctional labor, according to Russian news site Izvestia citing a Ministry source.

When a new set of penalties was first reported one month ago, the maximum punishment for organizations was 2 years of correctional labor or a fine of 500,000 rubles ($7,940, USD/RUB = 62.97). For individuals, it was one year correctional labor, or a fine of 300,000 rubles ($4,764), or one year’s worth of income.

According to a report by The Economist, 43% of men and 60% of women jailed in Russia work in labor camps, which are said to resemble those of the Soviet gulag in several respects.

The Ministry originally proposed a set of monetary penalties roughly one year ago. It drafted a schedule of fines broken down by the nature of the Bitcoin ban violation and whether the violator is an individual, business or government official. The proposed prohibitions include the transfer or mining of bitcoins, as well as the dissemination of information related to such activities.

The state of Bitcoin in Russia has been hanging in the balance for roughly two years, its assumed legality changing numerous times. Those looking to ban Bitcoin cite concerns of its use in Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term. Many suspect that authorities are imposing the ban to prevent capital flight, a concern that intensified with the crumbing of the country’s economy and ruble late last year.

At the beginning of 2015, Russia’s Deputy Minister of Finance Alexey Moiseev declared that Bitcoin will be banned this year.