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Russian Government is Considering Banning Crypto Payments in the Country

Mary Brendah by Mary Brendah - 05:50 AM Nov 30, 2019
Russian Government is Considering Banning Crypto Payments in the Country

The Central Bank of Russia is reportedly in support of a move to ban cryptocurrencies as a means of payment for goods and services in the country.  According to a local news report on Nov. 29, the Central Bank of Russia, the financial regulator and the ministry of finance; are in full support of the idea to prohibit crypto payments if such a legislative move is proposed. The Russian central bank has clarified that crypto can never be the legal tender in the country.

“If a decision is made to ban cryptocurrencies as a means of payment at the level of legislation, we consider it appropriate to support this position.”

Ruble is the only legal tender in Russia

At the moment, cryptocurrencies are applicable to e-commerce. Many Russian freelancers, programmers, designers and writers accept to be paid their salaries in crypto such as Bitcoin or Ethereum; according to Vladislav Antonov.

Vladislav Antonov is an analyst at Alpari Information and Analytical Center. Antonov also noted that cryptocurrencies are not officially allowed to serve as a legal tender. However, they are used to purchase a range of goods and services.

However, the central bank clarified in a statement that the Ruble is the only official legal tender in the Russian Federation. The central bank believes that cryptocurrencies carry with them significant risks. Some of these risks include money laundering, financing terrorism and conducting exchange transactions taking advantage of price volatility.

All Cryptocurrencies are in a grey area

Furthermore, digital currencies, smart contracts, mining and ICO’s are currently in a grey area in Russia. There are no laws that outlaw them in the country currently. Cryptocurrencies based on blockchain platforms such as Bitcoin and Ethereum; as well as coins like IOTA that are not on the blockchain network arelie in the grey area.

At the moment, reports claims that the Russian crypto industry is bracing itself for tough restrictions. In addition, rumors allegedly circulating suggests that criminal penalties could carry terms of up to 5–8 years. 

About The Author
Mary Brendah

Mary BrendahMy first love is music – then goes writing. I don’t write fiction, I analyze bulls and bears in markets. I call it my jungle, the digital jungle of crypto and chains.

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