Russia wants to ban virtual currencies like Bitcoin by 2015

Bitcoin logoRussia will likely restrict the use of virtual currencies such as Bitcoin in the months to come, and the new laws may be ready by next spring.

What Russian lawmakers want is to allow people to use their cryptocurrencies as they please, but they can’t use these “surrogate currencies as tender,” as stated by Aleksey Moiseev, the Deputy Finance Minister.

“We will discuss this law in the current session of parliament, and possibly even pass it then, or at the very latest by spring next year. We are currently dealing with comments from the law enforcement agencies, about the specifics of legal measures, and we will take their remarks into account. But the overall concept of the law is set in stone,” Moiseev added.

Officials say that they will open criminal proceedings against those who mint digital currency, but also against those who use them for transactions, while asking regulators to ban access to exchanges and online stores that accept Bitcoin.

It seems that the cross-border nature of virtual currencies, along with the fact that transactions take place anonymously and that there’s no supervisory body, is bothering regulators. They believe that makes currencies such as Bitcoins perfect for illegal transactions, ranging from money laundering, purchases of illicit goods and funding terrorism.

Furthermore, the cryptocurrencies are also quite volatile as they fluctuate wildly due to the fact that they aren’t actually backed by any assets. This takes people in the situation of losing a lot of money as the prices fluctuate.

For instance, it was just a few months ago that one Bitcoin cost $1,200 (€925), competing with the price for the ounce of gold, but now it has dropped to $478 (€368).

Russia’s Central Bank has already taken the time to warn people of the danger of virtual currencies that are not under its control several months back. Several other countries have taken similar stances on the matter, while others have wholeheartedly embraced it.

The supposition that virtual currencies are being used to support terrorism is likely true, but that doesn’t make Bitcoin the root of all evil. Regular currencies, such as the US dollar, the European Union Euro and many more, have been used by extremists for decades. As long as the transactions are in cash, these too are very hard to keep track of.

The real issue is most likely the fact that no government has control over the currency, allowing people freedom like never before.

Source: Softpedia

Tags: Russia

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

Sales of new models way below those of 2017 generation
The new Windows 10 browser will run on the Chromium engine
Google will shut the service down in April of 2019 instead of August as initially planned
The regular S10 will sport a 6.1-inch panel with the same front-facing camera design
The smartphone has a 6.4-inch Full HD+ (2340 x 1080 pixel) Infinity-O display
Google Play Services will deprecate the aging OS in newer releases
Apple might be looking to trial the feature on the iPad before iPhone
Toshiba, which released the world’s first 14TB nearline 3.5-inch and 26.1mm-height HDDs with 9-disk
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /

News Archive



Do you use microSD card with your phone?
or leave your own version in comments (11)