The Russian Ministry of Finance is drafting a law to criminalize the use of cryptocurrencies as money substitutes. The Bank of Russia and the finance ministry have previously opposed the use of cryptocurrency in this way, citing that only rubles can be used for payments of goods and services in Russia.

Money Surrogate Bill

The Russian Ministry of Finance proposed last week to "criminalize the turnover of money surrogates," including cryptocurrencies, Interfax reported. Deputy Finance Minister Alexei Moiseev revealed during Vnesheconombank's conference that his ministry has "prepared a draft law on criminal liability for the turnover of money surrogates," Business FM elaborated, adding:

The ministry assumes serious responsibility, right up to criminal ones, for arranging schemes, issuing money substitutes and receiving them…This concerns the payments in cryptocurrency.

Moiseev further clarified that "the text of the bill on monetary surrogates is not exclusively devoted to cryptocurrencies," noting that only the Russian ruble can be used to pay for goods and services, as declared in the Russian constitution. While "Monetary surrogates are prohibited," the publication explained that the laws have not specified penalties for violations. "The consequences of the violation of this principle have not been reflected anywhere for many years. The Finance Ministry decided to fill this gap" the news outlet detailed.