The Russian government has submitted a bill to the lower house of parliament aimed at amending the country’s legal code to bring criminal liability for cryptographic services offered without the consent or license of regulatory authorities.
In the bill sent On Friday, Russian lawmakers proposed to the State Duma that entities “conducting activities related to the organization of digital currency circulation” that operate without a license issued by the Central Bank of Russia could be held criminally liable.
Failure to register with the Bank of Russia may result in a fine of up to $4,000 and up to four years in prison, or a more severe penalty if you belong to an organized group.
https://www.youtube.com/watch?v=4aXXXTXl-Fqk
“The same act committed by an organized group or involving causing damage or deriving income on a particularly large scale will be punishable by forced labor of up to five years or imprisonment of up to seven years,” we read in the text of the draft.
The bill also provides for a “fine of up to 1 million rubles.” [$13,100] or an amount equal to the remuneration or other income of the convicted person for a period of up to five years.”
The bill followed a package of bills originally proposed in March that included criminal penalties for illegal cryptocurrency miners, but the latest legislation included details on fines and potential jail time for unregistered digital asset services.
According to Russian media RBC, the country’s Supreme Court he said that the Crypto Act lacks a “reasonable justification” for criminal sanctions.
The court said the measure was “premature” pending Russia’s adoption of a law on “digital currency and digital rights,” which is expected to come into force in July. If passed, the bill would give the Russian government greater control and oversight of the cryptocurrency industry.
Related: Since the Drift Protocol hack, at least a dozen crypto entities have been attacked
Russian cryptocurrency exchange Grinex is still struggling with a $14 million hack
Grinex, a Russian cryptocurrency exchange currently under sanctions, halted trading for users on Thursday after losing more than 1 billion rubles – about $13.7 million – in a hack that was suspected to be carried out by “hostile state actors.”
The company said it had provided relevant information about the attack to law enforcement and had filed a criminal complaint.
Warehouse: Will the CLARITY Act be good – or bad – for DeFi?
