Russian parliamentary representative: Hold Bitcoin legal, but trade and mine or be fined

The Russian Duma (parliament) representative may have finally given some clear explanations for the cryptocurrency, albeit unintentionally. While announcing a possible fine for the miners, the company said it is feasible to hold bitcoin.

Anatoly Aksakov, Chairman of the Russian State Duma Financial Markets Committee, revealed the news during an interview at the St. Petersburg International Economic Forum.


Digging bitcoin may be fined

Aksakov told the media at the meeting:

"According to Russian law, the unconditional use of cryptocurrencies will be considered illegal. This means that mining, organized output, circulation, and the creation of exchange points for these tools will be banned."

Penalties for such acts will be fines. However, this proposal only applies to public blockchains (such as Bitcoin and Ethereum) and does not apply to state-supported encrypted rubles.

So far, Russia has been talking about bans and regulations almost every month. But then Aksakov said something more interesting.

Holding bitcoin is feasible

Although it is proposed to ban mining and other activities, he stressed that it is recommended to allow bitcoin. In other words, as long as Bitcoin is obtained in foreign sales outlets and foreign exchange markets in accordance with foreign laws, there is no problem. Obviously, any trading point in Russia is illegal, just like mining.

In addition, Aksakov also said that he believes that technologies such as lightning network can increase the speed of transactions, which will rekindle interest.

Russian central bank governor Elvira Nabiullina will certainly feel uneasy. Last October, she also said how lucky the cryptocurrency boom was.

The central bank governor also attended the economic forum last week, and she told the parliament that she opposed the legalization of cryptocurrencies. So, is the attitude of the government really different from the central bank?

Maybe not. Nabiullina does say that the central bank "opposes cryptocurrency as a legitimate means of payment." Some people think that this will also belong to the circulation category, and will create trading points, so it is an illegal act.

Although Russian cryptocurrency legislation seems to be procrastinating forever, Aksakov claims that the bill will be passed before the end of the spring meeting in June. President Putin has postponed this deadline until February, so it is in everyone’s best interest to achieve this goal.

So, is Russia’s cryptocurrency regulatory rules increasingly clear? According to Aksakov, it seems to be very clear that only specific laws need to be passed.

In other words, if you started a large-scale mining activity in Russia last year, this would be bad news.