Russia's Pending Crypto Payment Fines Could Halt Crypto Transactions

A penalty of one million rubles for merely executing transactions in cryptocurrency is not a sensational headline but an unfortunate actuality within Russia. The legislation under consideration has yet to be finalized, but Should it pass, both corporations and individuals could face significant fines—up to 700,000 to one million rubles for legal entities, and 100,000 to 200,000 rubles for individuals—when conducting crypto payments. The proposal was put forth by Andrey Medvedev, head of the legal department at the Central Bank. These fines appear to favor the authorities' intent to eliminate cryptocurrency as a means of payment, citing concerns over tax evasion and manipulation. If enacted, this would likely deter risky transactions, helping the Central Bank attain its objectives but adversely affecting crypto investors, especially those involved in payments for goods and services in cryptocurrencies. Currently, transactions are still permissible, but continuous monitoring of legislative developments is essential.