14 DAY TRIAL // The Russian Ministry of Finance has proposed new regulations for the use of Bitcoin in the country's borders, Russian news agency Interfax reports.
Currently, Bitcoin is not banned in Russia, but it's not legal either since the country has laws in place that prohibit citizens and companies from operating with any kind of money substitutes.
During the last months, officials from the country's Ministry of Finance have gone through a series of amendments to the current penal code that would allow them to penalize citizens for the use of Bitcoin and other cryptocurrencies, each harsher than the previous.
Four years in prison for normal citizens
According to their latest proposal, Russian citizens would face a fine of 500,000 rubles ($7,100 / €6,400) if engaging in Bitcoin transactions or mining activities.
If citizens can't pay the fine, the government will then be permitted to retain monthly payments from the guilty party's salary or other income. A harsher alternative would be to imprison him for a period of up to four years.
For organized groups, the fine is 1 million rubles ($14,200 / €12,800). Additionally, the government will also be allowed to dock payments from all affected individuals for a period between two and four years. In case a judge deems it necessary, a prison sentence of up to six years can also be given to some of the group's members.
Seven years in prison for bank managers
The harshest penalties will be given to executives of financial institutions. They'll face a fine that can range between 1 million and 2.5 million ($35,500 / $31,800) or they'll have their income or salary deducted from two and up to four years. In their case, prison sentences can reach even seven years in jail.
In a previous version of this very same law, prison sentences were only of one year for normal citizens and a maximum of two years for bank execs.