Russia might be getting ready to forbid cryptocurrencies as a way to purchase items or assistance. It was reported on the 27th of November by Izvestia that multiple people know discussions that are still happening where the Ministry of Finance, financial regulator and the central bank of the country approve forbidding cryptocurrencies.
Are There Any Legal Ramifications On The Way
The way things stand right now, cryptocurrencies can be used to purchase items online and numerous copywriters, designers, and programmers who work independently want to receive their salary in Ether or Bitcoin. This information was told to Izvestia by Vladislav Antonov.
Vladislav Antonov who has reviewed and examined the data stated that even though it is prohibited, cryptocurrencies are used to buy many things including hotel reservations, household items, tickets and even as payment for rent on an apartment.
If this information is correct, the Russian government may realize that a ban is needed so cryptocurrencies can no longer be used as a form of payment because it raises worry about the potential of crimes.
Alexey Yakovlev is the leader of the banking department of the Ministry of Finance. He stated at a conference on the subject of cryptocurrencies: “We do not see any situation for cryptocurrencies to be used as a form of payment.” So there is no hope for crypto regulation to come in force.
The press area of the central bank has not given any confirmation to writing out something that could eventually become law, crypto regulation, but stressed that currencies like Bitcoin cannot be associated with regular currency and cannot be treated as a real way to pay for items.
The Law Will Encourage Trading Through Other Distribution Channels
These reports have stated that the people who use cryptocurrency will have to deal with more constraints and there is some gossip going around that this could result between 5-8 years of jail time for people who continue to use cryptocurrency.
It would not be an easy task to administer these new rules and some people in the industry believe some people who violate these rules will be made an example out of to stop other people from disregarding the new rules.
The leader of the Russia-OECD center for RANEPA has stated that the proposed law could encourage the growth of a trading system that would not be monitored by government officials.
The following was reported by Cointelegraph: Russia may want to set up rules that will go into effect no later than 2021 which would give the government authority to seize belongings.
Would you like to get more information on crypto regulation, cryptocurrency licenses in different countries, please contact our specialists!