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Russia intends to treat Bitcoin as a for...

Russia intends to treat Bitcoin as a foreign currency

Published on August 02, 2016

According to the domestic media, the government is now planning to label Bitcoin as a foreign currency.

Using Bitcoin in Russia would remain prohibited, however such changes would allow the purchase of Bitcoin through exchange platforms.

Russian authorities are willing to support changes in the digital currency status in the country.

According to the domestic media, the government is now planning to label Bitcoin as a foreign currency. Using Bitcoin in Russia would remain prohibited, however such changes would allow the purchase of Bitcoin through exchange platforms. Further, the users would be allowed to spend their cryptocurrency in the foreign countries.

Russia’s Ministry of Finance was previously known as being against the use of digital currency as an alternative to government-issued money, Bitcoin has been outlawed in Russia since 2014. As cryptocurrency is not controlled by bank or any governmental institution, Russian authorities felt it has the way for criminals to conduct illegal activities.

In an interview with Russian newspaper Rossiyskaya Gazeta, deputy finance minister Alexei Moiseev said the effort to support a ban of Bitcoin usage in Russia remains, as it is supported by Russian Constitution which mandates the ruble be the sole currency for national commerce.

Depending on how fast involved parties can come to an agreement, the proposal regarding digital currency in Russia should be submitted to the Duma by the end of this year.