The Bank of Russia has prepared and sent to the Ministry of Finance its version of the draft law on the ban on the issuance and organization of the circulation of private digital currency in the country.

The draft law provides for a ban on issuing of cryptocurrency, organizing its circulation, as well as the dissemination of information about this. The draft also prohibits banks and other financial market participants from owning private digital currencies. This ban applies to private cryptocurrencies issued using both Russian and foreign infrastructure.

It is also reported that banks will have to block money transfers using payment cards or electronic wallets if the credit institution has information that the recipient of the transfer is engaged in activities that contribute to the organization of the issuance, release and circulation of private cryptocurrencies both in Russia and abroad.

For violation of these requirements, a fine of $3,500-6,000 (300,000-500,000 rubles) for individuals and around $8,300-11,900 (from 700,000 to 1 million rubles) for legal entities will be provided.

Earlier, the government had approved the concept by the Ministry of Finance and instructed it, together with the Central Bank, to submit to the government a bill on the regulation of cryptocurrencies by February 18.

Original (in Russian)