Central Bank of Russia to Meet Financial Market Leaders to Discuss Bitcoin Regulation

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Central Bank of Russia to Meet Financial Market Leaders to Discuss Bitcoin Regulation,

According to the Russian newspaper, Izvestia, a prominent Moscow-based news outlet, Russia’s central bank will meet with representatives from the country’s financial markets to discuss Bitcoin regulation next week, a local news source claims. Though Bitcoin has been facing a lot of trouble in the country, the meeting may set new regulations and guidelines for cryptocurrency.

Nonetheless, expectations are that the Bank of Russia, the regulator with a high degree of probability will be quite loyal to cryptocurrency as the ratio of CB to the Bitcoin changed over the past year. Additionally, the operations Bitcoin Central Bank may authorize and regulate in particular, carrying out transfers and payments to individuals and interconnect them.

The Russian newspaper reports that following the countries like USA, Brazil, Israel, Germany, Norway cryptocurrency that literally emitted on computers legalized, the Bank of Russia may think of allowing Bitcoin in the country. The news outlet, says it is likely that the bank will be supportive of cryptocurrencies.

The first time that the Bank of Russia reacted against Bitcoin was at the end of January 2014 when it had said that according to Art. 27 of the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia),” the release of the Russian Federation is prohibited monetary surrogates.

Then the Bank of Russia had warned that Russian legal entities providing services for the exchange of “virtual currency” in rubles and foreign currency, as well as goods (works, services) will be regarded as a potential involvement in the implementation of suspicious transactions in accordance with the law on counteraction to legalization (laundering) of proceeds from crime and terrorist financing.

Requirement for Bitcoin Regulation in Russia

Quoting the deputy chairman of the National Council of the financial market, Alexander Naumov, the news outlet says that regulating Bitcoin market in the Russian Federation Central Bank will need cooperation with the Ministry of Communications and the Federal Security Service. Fraudsters may get imprisonment for up to 5 years under Illegal Banking Activity.

However, according to the Moscow-based news outlet the central bank’s stance on cryptocurrencies has changed over the last year. Those who are associated with the decision admit that the central Bank may authorize and regulate Bitcoin in particular, carrying out transfers and payments to individuals and interconnect them.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com