Russia & Bitcoin Update

Note from the CEO: What? Seems like just yesterday (actually a few months ago) that Russia was going to ban bitcoin, then a bitcoin ATM appeared in the lobby of a Russian bank along with a coffee shop that accepted bitcoins AND now the Ministry of Finance wants to legalize the digital currency.  Whew, hard to keep up with.

The Russian Ministry of Finance is saying that bitcoin and other cryptocurrencies should be just like other foreign currencies. They are worried that transactions conducted with bitcoin may spark suspicious and illegal activities. Like other countries, they seem to say that there is a legal official currency (for transactions) but if bitcoin is treated as a foreign currency it is OK. Very good distinction…….for now.

“Bitcoin and other cryptocurrencies should be treated like foreign currency, the Russian Ministry of Finance suggests while Bitcoin transactions could spark the suspicion of illegal activities.

Russia’s position on cryptocurrencies is an enigma. For years there have been rumors that the government plans to ban Bitcoin and impose harsh penalties of up to four years in prison. Yet still, legal clarification is missing and everything is pending.

After the Russian Central Bank was said to take the view of Bitcoin as an illegal monetary substitute, a new document of the Ministry of Finance indicates that at least the trading of bitcoin has a chance to become legal. According to Russian Blockchain blog Forklog.net, on November 29 a letter from Russia’s Federal Tax Service was published, which was written in early October.”

Source: BTCManager