Russia will not seek to take harsh measures against Bitcoin’s Use, Says Bank of Russia Deputy

0
126
Russia will not seek to take harsh measures against Bitcoin’s Use, Says Bank of Russia Deputy
Russia will not seek to take harsh measures against Bitcoin’s Use, Says Bank of Russia Deputy

Russia will not seek to take harsh measures against Bitcoin’s Use, Says Bank of Russia Deputy

Bank of Russia deputy chairman Georgy Luntovsky has said that despite the various instances wherein Bitcoin has been used for paying for drugs and weapons in Russia, it will not seek to take harsh measures against its use. The reaction has come months after the Bank of Russia warned Bitcoin and digital currencies users.

The new statement from an official from the Bank of Russia is quite encouraging for Bitcoin supporters and stakeholders compared to the one that was issued some months earlier wherein the bank had warned users about potential treatment under the law. The new development according to Bitcoin stakeholders is a good indication.

Georgy Luntovsky gave his opinion to The Wall Street Journal and told that the country was in the process of gathering information about Bitcoin and digital currencies. He was quoted saying that at this stage, the bank needs to watch how the situation develops with these kinds of currencies. These instruments should not be rejected.
The Authorities Don’t Want to Come Heavy on Digital Currencies

His statement is in furtherance to the efforts by the Russian financial authorities that appear to be close to clarifying their stance on Bitcoin. One serious step from the Russian financial authorities came with a policy research paper published by the Financial Action Task Force (FATF).

**relatedarticle**

FATF is an intergovernmental body set up to combat money laundering and terrorist financing. Any report by the organization is going to influence the policy by the Russian government regarding the digital currency. So far Bitcoin has had a complicated history in Russia and many businesses still worry about investing in Bitcoin startups in the country.

Russian Government Has not yet made its Final Opinion on Bitcoin

A rumor that national financial authorities banned the digital currency caused a lot of loss to stakeholders. The current stand by the Russian authorities seems to revolving around the danger of money laundering and funding of terrorist activities using Bitcoin than the concept of Bitcoin itself.

Russia is still undecided on Bitcoin. Its situation is very much like every other country which is perplexed by the new technology and does not know what to do. Though they conceive that there are some apparent risks from Bitcoin, they find it difficult to prove and avoid an outright ban on the Bitcoin companies or users.

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