Reaction to Cryptocurrency Ban

A new bill banning cryptocurrency transactions has been introduced by lawmakers in Russia, and an arm of the government has opposed it. The Ministry of Justice opposed the new regulations on Tuesday, a week after the Ministry of Economic Development also criticized them.

The bill was introduced by MPs in March. The bill is thought to be the idea of ​​the central bank, which has a prohibitive attitude towards cryptocurrency. The proposal received harsh criticism from Russia's crypto community. According to Russian newspaper Izvestia, Deputy Minister of Justice Denis Novak commented on the bill, criticizing its inconsistency. This was confirmed by the ministry's press office, and it was stated that the feedback was sent to the Digital Economy Think Tank, which works on policy issues on behalf of the government. The proposed bill states that Russians should not use the country's infrastructure to make any transactions with cryptocurrency. Additionally, the bill would allow individuals to inherit or accept money as a result of the counterparty's bankruptcy process. Additionally, cryptocurrencies can be seized like any other property by court order.

What Will Happen to the Confiscated Cryptocurrencies?

The Ministry of Justice pointed out that the courts have not yet decided what to do with the seized cryptocurrency and that this situation is not clear. Goods seized in this way are sold, but it will not be possible to sell if all crypto transactions in Russia are considered illegal. The ministry recommends choosing a government body that will help Russians sell crypto abroad. Meanwhile, Anatoly Aksakov, one of the MPs who put forward the bill, told the news agency TASS that the part of the bill on digital securities is ready to be passed and could go through a final hearing soon. Aksakov noted that the part about banning crypto transactions is open to discussion, including Russia's addition of a criminal code for violations.