Russian Official: Bitcoin a Conspiracy Created By US Intelligence Agencies

Russia's Deputy Finance Minister has confirmed the country's plans to penalise the conversion of cryptocurrencies such as bitcoin into the ruble.

Speaking to CoinDesk, Alexey Moiseev said a proposed draft law has been created and, if passed, would mean people engaging in crypto-to-fiat conversions would face up to four years in prison.

He explained:

"It's true that we have developed draft law which provides up to four years in prison for some types of activities which relate to ... quasi-currencies. These types of activities are typically related to an exchange of those currencies into the Russian national currency – the ruble. This is the only type of activity which we propose to penalise with criminal sentences."

Earlier this year, according to CoinDesk, Liberal Democratic Party MP Andrei Svintsov contributed to bitcoin's rocky history in Russia, telling a national broadcaster that digital currencies such as bitcoin were a conspiracy created by US intelligence agencies.

-RW