Russia: Bitcoin could be considered illegal by a draft bill

Wednesday 6 August 2014 00:57 CET | News

Russia’s Ministry of Finance has proposed a draft bill whose purpose is to ban Bitcoin use in the local market, reports.

On 1 August 2014, the Finance Ministry announced on the government’s regulation website, cited by the source, that it was drafting a bill which would state that Bitcoin users may become subject to law penalty because the only recognised currency is RUB.

According to the ministry, the ban is impending because monetary surrogates are widely used for buying illegal goods and money laundering. Moreover, the government agency intends to restrict access to websites that enable people to buy, sell, transfer and use crypto-currencies.

The Bank of Russia was the first government agency in the country to warn citizens and businesses about the risks associated with digital currencies like Bitcoin.

The central bank also mentioned that involvement in Bitcoin transactions and exchange services would be considered incipient actions to illegal activities, in accordance with existing legislation on money laundering, as well as counter terrorism legislation.

However, Bank of Russia deputy chairman Georgy Luntovsky has informed that the bill in question will be under discussion until the end of August 2014 and that if approved, the amended act will come into force in 2015.

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Keywords: Russia, Bitcoin, draft bill, ban, digital currency, crypto-currency, online payments, Bitcoin users, virtual currency
Categories: Payments & Commerce
Countries: World
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