Tuesday, April 11, 2017

Russia potentially changing stance on legality of Bitcoin and other crypto currencies

For the most part, Russia has been vehemently against Bitcoin and any other crypto-currencies, primarily because of their unregulated nature.  And even without the use of decentralized digital money within their borders, the Eurasian power constantly deals with other types of monetary problems that fall under the umbrella of 'money laundering' and other illicit activities.

But on April 11 this may slowly be changing as a Deputy Finance Minster for the government provided a ray of hope for the crypto-currency community as he announced that Bitcoin and other forms of digital money could actually become legalized as early as next year.


Cryptocurrencies may be recognized in Russia by 2018, according to Deputy Finance Minister Aleksey Moiseev. 
Moiseev says monitoring cryptocurrencies could be an instrumental tool against money laundering, and Bitcoin and other digital currencies could be recognized by next year as the central bank works with the government to develop rules against illegal transfers. 
The state needs to know who at every moment of time stands on both sides of the financial chain,” Moiseev said in an interview, as cited Bloomberg. “If there’s a transaction, the people who facilitate it should understand from whom they bought and to whom they were selling, just like with bank operations.” 
Last year the idea of a national cryptocurrency had been considered by the Ministry of Finance and the Central Bank, which would see the banning of all other virtual currencies in Russia. The idea had not been discussed by the Kremlin, however, according to Presidential Press Secretary Dmitry Peskov at the time. 
Russian officials had been opposing all virtual currencies, arguing their cross-border nature, transaction anonymity and lack of a supervisory body makes them the perfect vehicle for illegal transactions. - Russia Today
Bitcoin and other crypto-currencies have experienced a wild ride over the past year, with some nations such as India outright banning it completely as the government seeks to bring about their own version of a cashless society, while over in Japan the government has come to fully embrace its use by its citizens and businesses.

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