However, in some cases, law enforcement agencies may prosecute individuals under Article 174.1 of the Russian Criminal Code if cryptocurrency was used to launder funds or other property acquired by the individual as a result of committing a crime.
Russian banks often block payments to individuals and legal entities if they determine that such transactions violate anti-money laundering laws and Central Bank regulations.
Furthermore, businesses and individuals may face civil liability as a result of court decisions invalidating cryptocurrency transactions in violation of the law. For example, if Russian legal entities or individuals enter into transactions with each other involving payments for goods, work, or services in cryptocurrency in any form within the Russian Federation, the court, if the transaction is invalidated, may order the return of the property received under the transaction, compensation for its value, the recovery of the proceeds from the transaction for the benefit of the Russian Federation, or the restitution of any unjust enrichment. The specific liability depends on the nature of the dispute.
Exposing violators and proving cryptocurrency payments for goods, work, and services in Russia is becoming easier given the country's highly developed digital banking system. The bottleneck for such payments is the conversion from digital form to fiat.
However, not all such payments come to the attention of law enforcement agencies.
In my opinion, blocking cross-border payments between Russian counterparties outside the first regulatory sandbox is an ineffective approach for regulators. It could seriously complicate our country's foreign trade. Fine-tuning the existing mechanism of such a sandbox is crucial. This mechanism must be designed and fine-tuned so that individuals and businesses in Russia voluntarily seek to take part in it. Over time, perhaps within two years, the Bank of Russia, together with the relevant authorities, could develop and implement comprehensive legislation based on the regulatory sandbox, allowing citizens and businesses to conduct full-fledged crypto trading without risk to themselves, the financial system, and the national economy as a whole.
Russian banks often block payments to individuals and legal entities if they determine that such transactions violate anti-money laundering laws and Central Bank regulations.
Furthermore, businesses and individuals may face civil liability as a result of court decisions invalidating cryptocurrency transactions in violation of the law. For example, if Russian legal entities or individuals enter into transactions with each other involving payments for goods, work, or services in cryptocurrency in any form within the Russian Federation, the court, if the transaction is invalidated, may order the return of the property received under the transaction, compensation for its value, the recovery of the proceeds from the transaction for the benefit of the Russian Federation, or the restitution of any unjust enrichment. The specific liability depends on the nature of the dispute.
Exposing violators and proving cryptocurrency payments for goods, work, and services in Russia is becoming easier given the country's highly developed digital banking system. The bottleneck for such payments is the conversion from digital form to fiat.
However, not all such payments come to the attention of law enforcement agencies.
In my opinion, blocking cross-border payments between Russian counterparties outside the first regulatory sandbox is an ineffective approach for regulators. It could seriously complicate our country's foreign trade. Fine-tuning the existing mechanism of such a sandbox is crucial. This mechanism must be designed and fine-tuned so that individuals and businesses in Russia voluntarily seek to take part in it. Over time, perhaps within two years, the Bank of Russia, together with the relevant authorities, could develop and implement comprehensive legislation based on the regulatory sandbox, allowing citizens and businesses to conduct full-fledged crypto trading without risk to themselves, the financial system, and the national economy as a whole.
Link for the original article: Prime