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Russian Bitcoin Issuers Will Risk 7 Years In Prison (thestack.com)

Posted by timothy on from the what's-your-theory-of-the-state? dept.

An anonymous reader writes: The Russian Ministry of Finance has announced an amendment to the country's criminal code which will impose prison sentences of up to seven years for the issuing of Bitcoin or other cryptocurrencies. A government source speaking to Interfax (Russian) said that the maximum prison sentence for individuals found issuing cryptocurrencies would be 2-4 years, and/or up to three years' worth of salary or income, whilst managers of dispensing institutions could face seven years in prison, up to four years of income equivalent in fines, and a lifetime ban from similar posts. Russia announced the ban on Bitcoin or other 'money surrogates' in February of 2014, asserting that cryptocurrencies facilitate money-laundering and other criminal activity.

20 of 99 comments (clear)

  1. In Soviet Russia by idbeholda · · Score: 4, Funny

    The bank robs you.

    1. Re:In Soviet Russia by Anonymous Coward · · Score: 4, Interesting

      Also in Japan, Switzerland, Sweden, and Denmark. Also, the ECB. And probably coming soon to a country very near you.

    2. Re:In Soviet Russia by grumpy_old_grandpa · · Score: 2, Insightful

      Citation needed. Because according to this, there are few or no special regulations for Bitcoin in the countries you mentioned:
      https://en.wikipedia.org/wiki/...

    3. Re:In Soviet Russia by ClickOnThis · · Score: 4, Insightful

      Not just in Soviet Russia, comrade.

      --
      If it weren't for deadlines, nothing would be late.
    4. Re:In Soviet Russia by mrlibertarian · · Score: 3, Informative

      I believe the AC was referring to negative interest rates.

  2. In Soviet Russia? by Nidi62 · · Score: 4, Informative

    Russia announced the ban on Bitcoin or other 'money surrogates' in February of 2014, asserting that cryptocurrencies facilitate money-laundering and other criminal activity.

    I believe that was mistranslated. I think it should actually read that cryptocurrencies don't facilitate the graft and money grabbing of Putin and his friends. Sure, I might be nitpicking on a little error of translation, but it's important to get things right.

    --
    The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
    1. Re:In Soviet Russia? by Coren22 · · Score: 2

      I just assumed that the next law would be against the use of the ruble as it can be used to facilitate money-laundering.

      --
      APK likes to ask for responses to the same things over and over. Maybe he just likes the responses?
  3. Of course bitcoin facilitates money laundering! by bluefoxlucid · · Score: 2

    That's the whole point! Untraceable, unaccountable, easily-hidden money. The cops can't find it on you by checking your pockets; the FBI can't find it by checking your bank account; and the individual block chains tend to flow in and out of exchanges with no association to who is putting them in or taking them out. Bitcoin exchanges are money laundering operations as a feature: bitcoins go into a consolidated fund, and the same number of bitcoins come back out of that consolidated fund; they're different block chains, so their block history is not traceable to any particular original owner.

    It's like they just wrote the mission statement of Bitcoin and said "ILLEGAL!"

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    Support my political activism on Patreon.
    1. Re:Of course bitcoin facilitates money laundering! by Coren22 · · Score: 4, Interesting

      How do I take the money from my drug enterprise into bitcoin without any tracing back to me?
      Is there a bank where I can walk up with $10 million and ask to convert it into bitcoin without the bank requiring ID?

      --
      APK likes to ask for responses to the same things over and over. Maybe he just likes the responses?
    2. Re:Of course bitcoin facilitates money laundering! by Archangel+Michael · · Score: 4, Insightful

      Because "Control"

      If the government can't control you, you are a danger to the government. And government cannot allow its people to be uncontrolled.

      And this "war on crypto-currency" will fare about as well as the War on Drugs has.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    3. Re:Of course bitcoin facilitates money laundering! by TechyImmigrant · · Score: 2

      That's the whole point! Untraceable, unaccountable, easily-hidden money. The cops can't find it on you by checking your pockets; the FBI can't find it by checking your bank account; and the individual block chains tend to flow in and out of exchanges with no association to who is putting them in or taking them out. Bitcoin exchanges are money laundering operations as a feature: bitcoins go into a consolidated fund, and the same number of bitcoins come back out of that consolidated fund; they're different block chains, so their block history is not traceable to any particular original owner.

      It's like they just wrote the mission statement of Bitcoin and said "ILLEGAL!"

      Avoiding the egregious charges of card processing companies is a legitimate and very appealing use. That's is why we accept risk in society. So we can have nice things, even though bad people don't stop being bad.
       

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    4. Re:Of course bitcoin facilitates money laundering! by tnk1 · · Score: 3, Insightful

      That's not really true. The War on Drugs hasn't failed at all.

      The War on Drugs has been a *huge* success... for those people who want a ready made excuse to throw people in jail.

      Guess what the War on Bitcoin will provide?

      The goal of the law isn't to *end* Bitcoin, it is merely to keep it from overtaking the ruble for most purchases. In this, it will totally succeed.

      Also, by insuring that you can only buy criminal things with now-criminal crypto-currency, it will ensure that Bitcoin never gets a reputation as being useful for normal business. Just having a Bitcoin will equate you with all sorts of drug runners, terrorists, and child pornography sorts all by association. I can already envision the judges and jury recoiling from you with a look of fear and disgust on their faces for your dirty crimes.

      Bitcoin threat averted. And here you thought that they were failing....

    5. Re:Of course bitcoin facilitates money laundering! by MightyYar · · Score: 4, Insightful

      It's basically exactly analogous to cash.

      With cash, you can trace it with the serial number and with bitcoin you need the chain - both are trivial to work around, though laundering physical money is harder.

      With cash you cannot tell who gave you the cash- this is also the case with a "laundered" bitcoin. Here cash has the edge since you don't need to take any action.

      With cash, you can hide it anywhere - just like your bitcoin wallet. Bitcoin has an edge here because the wallet is ultimately just a number. It is easier to hide a slice of information than a physical pile of cash.

      Both seem to scare the hell out of authorities. That's perhaps the best "feature".

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    6. Re:Of course bitcoin facilitates money laundering! by bluefoxlucid · · Score: 3, Interesting

      You're a fad libertarian if you didn't know governments frequently ban things like carrying large amounts of money, traveling with large amounts of money, or making large bank account deposits and withdrawals without disclosure to the authorities. In Alabama, a routine traffic stop will end in the police confiscating your drug money if they notice you have more than $100 in cash. No drug charges, just "that's a lot of cash to be carrying. Don't you use credit cards, boy? That must be for drugs. Now we can't arrest you for drugs, but we can take your money on suspicion of involvement in illegal activities."

      --
      Support my political activism on Patreon.
  4. Don't steal, the government hates competition. by s13g3 · · Score: 2, Informative

    "Russia announced the ban on Bitcoin or other 'money surrogates' in February of 2014, asserting that cryptocurrencies facilitates public competition to the government's own money-laundering and other criminal activity while making it more difficult for the government to interfere with legitimate private economic activity."

    FTFY.

    --
    "Inveniemus Viam Aut Faciemus" 'We will find a way... Or we will make one!' --Hannibal of Carthage
  5. Some Peeps Don't Give 2 Fucks by zenlessyank · · Score: 2

    about the laws made by man to control man. It has always been this way and it will ALWAYS be this way now and in the future. Pass all the laws you want.

    1. Re:Some Peeps Don't Give 2 Fucks by rubycodez · · Score: 2

      the lawmakers have armed goons and cages and torture centers to support their will and control over you, and enforce their interpretation of the scribbles they made on paper. you're been fucked, are being fucked, and will be fucked over until you die.

  6. Banning all money surrogates? by mark-t · · Score: 2

    Wouldn't that include any form of barter or trade that did not involve the government sanctioned currency?

    This would mean even playing games that use fictional currency would be illegal, wouldn't it?

    --
    File under 'M' for 'Manic ranting'
  7. Re:Only outlaws will have bitcoin by Yomers · · Score: 2

    Basically nothing gonna change - you may confirm it by observing BTC/RUR exchange offers at localbitcoins.com. Russian internet currency exchanges have operated illegally since the beginning of times. I see news like this couple of times a year - yep, bitcoin transactions continue to illegal in Russia.

  8. Bitcoin doesn't clean very well. by sims+2 · · Score: 3, Funny

    I always use Tide when I launder my money. http://nymag.com/news/features...
    Leaves it with a nice fresh scent too!

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