Home News Russian businessman was fined for installing bitcoin ATMs in Irkutsk

Russian businessman was fined for installing bitcoin ATMs in Irkutsk

The Federal Financial Monitoring Service of the Russian Federation (Rosfinmonitoring) has taken administrative legal action against the businessman from Krasnodar, who installed bitcoin Automated Teller Machines (ATMs) in Irkutsk. He is now facing charges of laundering the proceeds of crime via BTC sale.

“The Prosecutor’s Office checked the resident of Kransodar, who installed bitcoin ATMs in Irkutsk, for compliance with the law on cryptocurrency sales service delivery. The audit revealed irregularities, which could have contributed to legalization of proceeds of crime and terrorist financing,” – the official statement on the matter reads.

Neither Rosfinmonitoring, nor the Prosecutor’s Office in Irkutsk did specify the exact nature of misconduct on the part of the accused entrepreneur, however.

Following the audit, the local Prosecutor’s Office in Irkutsk has launched administrative proceedings against the businessman under the Part 1 of the Article 15.27 of the Administrative Offences Code of the Russian Federation (Failure to Observe the Provisions of the Legislation on Countering the Legalization of Incomes Received Through Crime (Money Laundering) and the Financing of Terrorism). The Prosecutor’s Office also instructed the entrepreneur to remove the violations of the law and slammed him with a ₽ 50 000 (about $760) fine.

Russian law enforcement agencies have been issuing warnings against installing crypto ATMs in the country since last year due to unclear legal status of cryptocurrencies.

Meanwhile, bitcoin ATMs keep on spreading across the world. As of May 2018, there were already 3 000 such machines worldwide.