Russia to label bitcoin as foreign currency

Regulation | July 19, 2016 By:

The Ministry of Finance in Russia intends to prohibit the issuance of bitcoin in the country, but users can buy bitcoin through exchange platforms. Additionally, they can use this purchased cryptocurrency to spend it in different countries around the world.

As the Deputy Finance Minister Alexey Moiseev said in an interview with “Rossiyskaya Gazeta”, this approach has been developed while working on a new version of the draft law that previously was aiming at the complete ban of cryptocurrencies in Russia.

The latest amendment is certain to help ease regulatory oversight on bitcoin and cryptocurrencies in Russia. The financial regulatory authority is changing its stance because of how blockchain and bitcoin and interwoven, with the decision coming at a time when Russian authorities – like the country’s central bank – are actively engaging in blockchain development.

“But the blockchain works in such a way that bitcoin always appear as side products of its use. It is obvious, that in this case, we need to exclude operators from liability for its emission, for them to avoid any risks of prosecution,” said Moiseev.