Russia Bans Crypto Mining to Bolster Their Own Cryptocurrency, the CryptoRuble

The Russian government seems to be backtracking a bit on bitcoin and altcoins, as they are in the process of refining their legislation on what they will allow for the trading and mining of the currencies.

It seems that mining in Russia could become a criminal activity. The Russian Ministry of Finance has already put forth a plan to make the mining of the cryptocurrency illegal. Their stance on purchasing and selling cryptocurrencies are less restrictive and are not punishable.

The Deputy Finance Minister Aleksey Moiseev said this:

“The penalties will be different, mostly administrative, but if someone created the cryptocurrency for the purpose of settlements, then there will be a criminal punishment”

It still only is a proposed plan, so there is nothing that is fully established as of yet. So, the state of virtual currencies is still in a sort of limbo, looking for further concrete announcements.

The Finance Minister went further and stated that those who engage in creating systems that are akin to pyramid schemes in its traditional sense, or those who formed cryptocurrencies for the sole purpose of avoiding taxation, would certainly be punished.

The Ministry also noted that if they were to let the act of crypto mining continue, they might have a government registration process that miners would have to participate in if they wanted to legally continue their mining. This registration process would account for both the owners of the companies (entrepreneurs) and the company itself.

The Russian government still seems to be continuing their cryptic stance on the matter, confusing their citizens at every turn.


The legalization of Bitcoin in Russia

It seems that purchasing and selling bitcoin in Russia is a concrete aspect that one expects from the government. Yet the uncertainty lies in the timing. How long will it take for the government to pass their legislation? What’s taking them so long? This and other questions are at the forefront of those who are involved in the industry, as they need to be able to understand these things so that they can set up operations or seek their opportunities elsewhere.

It seems that the legislators are going to be taking at least a couple more months on the finalization of the legislation.

As Bitguru reported prior, the government seems to be rather confused about how it approaches bitcoin, one month they are for it, and the next month they are shunning it completely.

Yet, President Putin has now told those responsible that it is time to implement regulations in regards to the specific aspects of initial coin offerings, trading of cryptocurrencies, and mining by mid-2018.  Will they actually implement it around this time frame, or will be there more confusion? Will the legislation be friendly to all involved in the cryptocurrency ecosystem?

The government may be trying to see how to best bolster their own cryptocurrency that they have in development, the CryptoRuble.

The Russian government has to understand the different mechanics of the cryptocurrency system. They have to make sure that there are incentives for people to participate and grow the strength of the CryptoRuble, so they must make sure that they are regulating other cryptocurrencies to their benefit.

Interestingly, the CryptoRuble, will not be able to mined but can be exchanged for traditional rubes, so it will be interesting to see how it is distributed.

By | 2017-12-08T23:03:01+00:00 December 8th, 2017|Cryptocurrency News|0 Comments

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