Litecoin, Bitcoin Trading Likely to be banned in Russia

Bitcoin, Litecoin Trading Likely to be banned in Russia
Bitcoin, Litecoin Trading Likely to be banned in Russia

Bitcoin, Litecoin Trading Likely to be banned in Russia

Russia is the new country on the list of those countries who are taking major steps against the digital currencies. After the recent arrest of BitInstant currency exchange CEO and Bitcoin Foundation Vice President Charlie Shrem on the money-laundering charges, Bitcoins, Litecoins have fallen under the scanners of many countries for its potential misuse in drugs, trafficking, etc.

The recent one to agree is a Russian politician who fears the abuse of the virtual currency by terrorists and wants to restrict use. So far Bitcoin transactions is colliding with the existing anti-terror laws in Russia. The central bank of the country has released an official warning after the chief of OAO Sberbank had broken a lance for the virtual currency. With the bill, Parliament aims to dry up the sources of financing of terrorists that could lead to restrictions of the Bitcoin trade.

This restriction will also directly affect the second most popular digital currency Litecoin, which has always seemed to be affected by the events happening around the Bitcoin market.


Meanwhile in Russia, transactions such as the purchase of rubles, goods and services with Bitcoins are likely to be classified as “dubious”, according to the Russian laws against money laundering and financial terrorism, said the central bank in a statement released on Monday.

The decision has found the resistance in Herman Gref, head of the largest bank in Eastern Europe. He is still convinced of the benefits of the virtual currency. “It’s a very interesting global experiment that breaks with the paradigm of the issue of currencies,” the Sherbank chief said in an interview with Bloomberg News. A ban would be a “colossal step backwards,” added the former economy minister.

“It should definitely not be banned,” Gref said. “It must be studied and perhaps regulated properly.”

Both Bitcoins and Litecoins have already been speculated to be the “next best thing” in the financial circuit. There is large money riding on both the currencies – worth millions of dollars to be specific.

To contact the reporter of this story: Jonathan Millet at