The legal status of other encryption currency bitcoin recognized in Russia

The legal status of other encryption currency bitcoin recognized in Russia


A document published in November 29th found that the legitimacy of the bitcoin trading use and ultimately accepted the Russian federal tax department. The document also stressed that the use of encryption currency will not be prohibited by law.

Over the past three years, the Russian government has not prohibited or accept bitcoin, and whether it should impose penalties on issues such as determined. During this period, the Russian Ministry of Finance proposed bitcoin users up to four years in prison and suggestions. The bank officials involved in bitcoin, is to be sentenced to seven years in prison, and to prohibit its working in financial institutions. However, recently, the Russian government had to give up the decision, and instructed the Ministry of Finance drafted a new bill on bitcoin.

Bitcoin as a foreign currency

It is reported that the new document from the Russian Federation tax authorities acknowledged the legitimacy of bitcoin, but also said that all trade behavior associated with bitcoin or other encryption currency would be regarded as cross-border transactions or foreign securities. Basically, this move will bitcoin and other encryption currency trading has become a kind of currency trading.

The statement also pointed out that the Russian government will investigate all use bitcoin for money laundering and terrorist activities personnel. Because there are many related interpretation file is not released, so the government whether this means that in the transaction that KYC (know your client) and AML (anti money laundering coordination mechanism is still unknown). From all indications, the policy is still not clear.

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