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Reports Indicate That The Russian Government May Abandon The Penalties For Bitcoin Use

Reports Indicate That The Russian Government May Abandon The Penalties For Bitcoin Use

During the last couple of months, Bitcoin has become more of a taboo subject over in Russia, especially due to the numerous government tries to discourage the use of the digital currency. Regardless of this, recent reports indicate that there is some room for improvement.

With this in mind, Russian authorities are reportedly considering the idea of abandoning the efforts to institute criminal penalties for those who use the cryptocurrency within the country. Surprisingly enough, it seems that representatives from the country's Central Bank, government bureaus and the Ministry of Finance agree with the idea, and have become more supportive Bitcoin.

Russia

In fact, further reports indicate that there are high chances for representatives coming from the groups mentioned above, to submit a report to Russia's President, Vladimir Putin, asking him to cancel on the plan of introducing criminal penalties. The main idea behind Russia's dislike against the digital currency is all based on a paragraph of the country's Constitution, stating that no other currency except for their national one can be used within the country, including surrogate currencies such as bitcoin. There is also fear that Bitcoin's recent spikes in popularity will reduce the value of traditional, fiat currencies.

In the report, it was stated that: "At the same time, the meeting decided that it is necessary to monitor the use of virtual currency and further [analyze] the risks [associated with] using money surrogates for criminal purposes. With this in mind, it can be presented a proposal to amend the regulations if necessary."

Once the report is submitted, it will likely end the two years of speculation in Russia, regarding the cryptocurrency. During these two years, there were numerous reports stating that those who were found guilty of using money surrogates, would have to pay fines up of to $25,000, and even face correctional labor. Numerous members of the digital currency community disputed these plans, and it seems like finally, things are taking a turn for the better.

Luckily, the pressure put in by the community has led to a softening in the regulations, especially by the Russian Ministry of Finance who was once the most aggressive regulator, acting against the interests of the bitcoin community. Not long ago, the deputy finance minister, Alexei Moiseev made a statement in which he said that cryptocurrencies could be regulated, thus accepting the idea that they're here to stay.

Based on everything that has been outlined so far, what do you personally think about the recent developments in Russia? Let us know your thoughts in the comment section below.

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