Russia Bans the Use of Cryptocurrency

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Russia Bans the Use of Cryptocurrency

ForexMinute.com – The anti-cryptocurrency bill that was proposed to the Russian Ministry of Finance received a verdict this Friday. Under the new law, Bitcoin and other digital currencies will be banned from being created and distributed within the Russian territory.

The government also warned people of being imposed with heavy fines, if they are found to be involved in any use, creation and distribution of “money surrogates” like Bitcoin, Litecoin and others. Therefore, any chances of launching and operating Bitcoin businesses in Russia is impossible under the current law.

The entire details of the law is available here.

How the Ban Will Impact Cryptocurrency Market
A ban is not an ultimate verdict that would stop Russians from using cryptocurrencies. The technology today provides people enough chances to encrypt their wallets and transactions. However, the cryptocurrency community in Russia might be reduced fearing the implications of being caught. That would simply reduce the demand from that area, which will not impact the market entirely. Had it been a ban imposed by China, which provides the world’s maximum cryptocurrency trades, the impact on the entire Bitcoin and altcoin market could be worse.

However with Russia, such ban would only pinch the Bitcoin market for a while. The price is poised to drop, but for a temporary period. Governments can’t possibly implement the law on a larger scale as it will require a whole physical setup to monitor the transactions made via digital currencies. People will continue to operate their investments and businesses, though in shady avatars.

The arrival of anonymity-offering altcoins will further complicate the matter for Russian finance police. We can thus see a wider demands of coins like Monero and Darkcoin in future. They must speed-up their testing phase indeed.

Now back to Bitcoin, a decentralized system which allows you to transfer any amount of wealth instantly, to anyone, from anywhere to anywhere, anytime, without having to pay excessive tariffs, without having to worry about fraud or the debasement of the currency, without having to ask anyone’s permission and without being required to identify themselves. Do you really think that something like this can be eliminated by a decree?

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com

  • Foreheadstain Gorbichev

    What did Russians use to light their homes before candles?

    Electricity

    Banning a once in a lifetime investment before it rallies, is idiotic. In 10 years don`t cry when each Bitcoin is over 1 million dollars.