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Understanding the Status of Bitcoin in Russia

Understanding the Status of Bitcoin in Russia

Russia has always been an important force for the evolution and value of digital currency, yet the numerous internal debates going on in the country make it hard for the average bitcoin users to understand what is really going on, and whether the Kremlin government is either against, or for digital currencies.

This mostly relates to the numerous news articles related to Russia putting Bitcoin in a bad light, similar to what China has been doing for a while, yet is this really the truth? Recent reports indicate that last week, law enforcement in Russia decided to arrest three individuals, who were then charged with illegally trading around $9 million worth of Bitcoin, which represents the country’s first criminal case against bitcoin sales so far. While some may interpret this and state that the Russian government is against any use of bitcoin, it simply shows that the Kremlin authority wants to crack down on those who are using the digital currency as a means for money laundering, rather than its true purpose. Not only this, but there have been numerous reports of Russian courts banning several bitcoin websites alongside with exchanges from allowing people to exchange bitcoin to rubles and vice versa, mostly due to the fact that the law states that there is no legal way for people to legally exchange bitcoin into rubles.

Russia Bitcoin

Despite these aspects, it is important to mention that the Russian government, for instance, is planning to issue a law that would subsidize the cost of electricity for those who are mining the digital currency, thus showcasing that they aren’t fully against owning, mining and making transactions using Bitcoin, thus showing that Russia remains dedicated to cryptocurrencies in the long run.

Another recent report showcases that at this time, the Russian Finance Ministry is actively working on a draft bill meant to fully legalize, and even regulate digital currencies. In a recent statement, the finance minister of Russia mentioned that: ‘All countries are working to legislatively regulate the use of this financial instrument, and the financial instrument is very volatile, that is, today it has one price, tomorrow another. In order for us not to have so-called deceived investors, regulation is necessary. The Ministry of Finance will prepare such a draft law by the end of the year.’ Another press statement belong to the deputy finance minister of Russia states that: ‘We believe it is possible for individuals to participate in the purchase of these instruments, but these purchases should be clearly regulated, identified, and settlements in these cryptocurrencies must be controlled by the relevant authorities.’

These statements no longer have a vague meaning and simply showcase what Russia is planning to do: find a way to regulate digital currencies so that they will not hurt the customers, not be used as money laundering instruments, or for illegal activities. Judging by this alone, it can be appreciated that Russia doesn’t want to rule out digital currencies

Based on everything that has been outlined so far, what do you personally think about Russia’s attitude towards digital currencies? Let us know your thoughts in the comment section below.

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