[2017-10-10] Putin Condemns Bitcoin, Calls for Russian Ban of Digital Currencies

[cybersofts]

Russian government-owned RT and Reuters both report that Vladimir Putin has decided to take a stand against cryptocurrencies in general, and Bitcoin in particular. RT reports that Putin believes digital currencies could be used to finance terrorism, evade taxes and launder money, and that Bitcoin itself is a pyramid scheme.

Putin takes a stand

RT quotes Putin as saying that Bitcoin creates:

    “Opportunities to launder funds acquired through criminal activites, tax evasion, even terrorism financing, as well as the spread of fraud schemes.”

After Putin blamed a host of Russia’s criminal problems on Bitcoin, the central bank echoed his remarks, calling digital currency a pyramid scheme:

    “We have seen how Bitcoin has transformed a payment unit into an asset, which is bought in order to obtain a high yield in a short period of time. This is the definition of a pyramid.”

Of course, just a year or two ago, pundits were saying Bitcoin needed to be regulated because the falling price was causing investors to lose money. Now it’s the rising price that’s a problem, apparently.

There goes that plan

Ironically, just last month Finance Minister Anton Siluanov said:

    “There is no sense banning [digital currencies], there is a need to regulate them.”

Less than a week ago, Siluanov was planning on including the topic of digital currency in the country’s financial literacy strategy.

Likewise, at the end of August, Cointelegraph reported that the Moscow Exchange was considering including Bitcoin-based derivatives and exchange traded funds (ETFs) among its many offerings.

Even though today is the first time Putin took a direct stand against Bitcoin, clouds have been gathering on the horizon for some time. Russia’s deputy finance minister Alexey Moiseev recently called Bitcoin a pyramid scheme and announced his intention only to allow “qualified investors” rather than “ordinary people” to buy Bitcoin.
Consequences

Cointelegraph reported earlier today that the Bank of Russia is attempting to block all Bitcoin exchanges in the country. Despite the sharply negative news out of Russia today, Bitcoin continues its surge toward $5,000. This comes following a sharp drop from $5,000 to $3,000 last month, and a rapid rebound that has brought the digital currency almost back to it’s all time high.

In the last month, the market first reacted to, then shrugged off, China’s ICO ban, China’s exchange ban, South Korea’s ICO ban, and now Russia’s attempt at banning Bitcoin. For the market to remain bullish in spite of the volume of bad news demonstrates just how powerful the Bitcoin bull is.



Source: https://cointelegraph.com/news/putin-condemns-bitcoin-calls-for-russian-ban-of-digital-currencies

[Marry Finch]

Since the mass media cite absolutely contradictory opinions of various Russian officials, including Putin, probably everyone is already tired of this and Russia is already waiting for some concrete steps in relation to the crypto-currency. I think there will have to admit it, because it has already had a strong impact on the economy of each country and it is already impossible to ignore it.

[checkmate25]

He's putting more FUD to control this. I hope everything gets better soon in russia. Regulation is probably the way. lets just wait for it. ofcourse after regulation is mass adoption

[rjbtc2017]

I thought putin is pro-cryptocurrency but now they are banning it?.Will Russia also ban ICOs? SALT ICO have been inactive here in bitcointalk. I thought they will take this opportunity to challenge bitcoin but it seems like they already giving up. Will they have their own coin that's why they are banning bitcoin for their own benefit?

[Kakmakr]

Mark my words, Putin will get Bitcoin banned and then he will support Ethereum, because he already met with Vitalik earlier this year. Putin has a history of getting rid of his competition and Bitcoin might be seen as the competition for his other hidden agendas.

Let's see if I was right about this or if this was simply fud, time will tell very soon. ^smile^

[rjbtc2017]

Mark my words, Putin will get Bitcoin banned and then he will support Ethereum, because he already met with Vitalik earlier this year. Putin has a history of getting rid of his competition and Bitcoin might be seen as the competition for his other hidden agendas.

Let's see if I was right about this or if this was simply fud, time will tell very soon. ^smile^

This is what the original "hearsay" "article" that I have read here in bitcointalk. It says that since Russia has a very low electricity fee they will use that opportunity to mine bitcoins and create their own coins, If this is true then it is smart of putin to support the living coin and already established trust which is ethereum. In my opinion this not just a simply or ordinary FUD.

[iamTom123]

I think this is not really what I read in another thread on the recent meeting with Putin where top bureaucrats were discussing the coming in of cryptocurrency. Which is telling us the truth and which is just lying or spreading FUD?

It is true that Putin commented on the fact that cryptocurrency can be used by criminal activities but he is saying that as the backdrop for the need to adopt regulations...he never mentioned of banning Bitcoin or cryptocurrency in general!

Here is the link to the news which I believe to be the real one: https://news.bitcoin.com/putin-central-bank-unnecessary-barriers-cryptocurrencies/.

It can be easy to really twists the words coming from a powerful country like Russia and more so because we are really watching if Russia will eventually join the Bitcoin club or will follow the lead of China in banning cryptocurrency.

So which is spreading the FUD of the two?

[VladislavP]

Since the mass media cite absolutely contradictory opinions of various Russian officials, including Putin, probably everyone is already tired of this and Russia is already waiting for some concrete steps in relation to the crypto-currency. I think there will have to admit it, because it has already had a strong impact on the economy of each country and it is already impossible to ignore it.

Agree.

[hatshepsut93]

I think this is not really what I read in another thread on the recent meeting with Putin where top bureaucrats were discussing the coming in of cryptocurrency. Which is telling us the truth and which is just lying or spreading FUD?

It is true that Putin commented on the fact that cryptocurrency can be used by criminal activities but he is saying that as the backdrop for the need to adopt regulations...he never mentioned of banning Bitcoin or cryptocurrency in general!

Here is the link to the news which I believe to be the real one: https://news.bitcoin.com/putin-central-bank-unnecessary-barriers-cryptocurrencies/.

It can be easy to really twists the words coming from a powerful country like Russia and more so because we are really watching if Russia will eventually join the Bitcoin club or will follow the lead of China in banning cryptocurrency.

So which is spreading the FUD of the two?

Well, lets use some common sense. The article in the original posts cites Russia Today and Reuters as their source and post their links:

https://www.rt.com/news/406269-cryptocurrency-risks-terrorism-putin/

https://www.reuters.com/article/us-russia-cenbank-bitcoin/russia-turns-cold-on-crypto-currencies-idUSKBN1CF0RF

Now, what sources are cited in that article from bitcoin.com that you believe is true? The answer is, there are no sources.

So, what we have here is that Putin went on the record and said Bitcoin is bad and then some writer from Ver's site made a fictional article about Putin endorsing Bitcoin.

 Why? I don't know

[greeklogos]

Yes, Putin was right when he said about the possibility of money laundering obtained by criminal means, tax evasion and financing terrorism, and, of course, the distribution of fraud schemes, the victims of which can become ordinary citizens. We all know that. But I don't understand why authors of such threads always write about "bitcoin banning" when the talk is about simple regulation of cryptocurrencies?

[Palmerson]

Yes, Putin was right when he said about the possibility of money laundering obtained by criminal means, tax evasion and financing terrorism, and, of course, the distribution of fraud schemes, the victims of which can become ordinary citizens. We all know that. But I don't understand why authors of such threads always write about "bitcoin banning" when the talk is about simple regulation of cryptocurrencies?

Because we are talking about banning the use of crypto currency for citizens. Putin himself and his entourage of stealing and laundering money with the help of Fiat. He is afraid that a smart Russian will turn away from the ruble and the Russian economy will collapse. It's called friends everything, to enemies the law.

[FrueGreads]

I don't get these guys. They don't seem well organized and keep sending mixed rumors about their view on bitcoin and crypto in general. They talk about welcoming miners in Russia, they talk about introducing the crypto subject in education, they talk about trading crypto in Moscow stock exchange, and now they come with the ban. Well I guess that we don't really care, and all these messages will just make the bitcoin community immune to all this poison. This is why bitcoin was created, to not really care about what governments say, since they can't really make up their minds.

[buwaytress]

I may be biased here but I'm much more inclined to believe the source from Kremlin, than the one from RT or Reuters. Putin may have issued some general cautions against using Bitcoin as a solve it all, but he was pretty clear that Russia cannot ignore crypto and must be ready to take a learning approach. He also issued a virtual smack on Central Bank's hands for outright namecalling of crypto.

Yes, Putin was right when he said about the possibility of money laundering obtained by criminal means, tax evasion and financing terrorism, and, of course, the distribution of fraud schemes, the victims of which can become ordinary citizens. We all know that. But I don't understand why authors of such threads always write about "bitcoin banning" when the talk is about simple regulation of cryptocurrencies?

Exactly, another author sensationalising the news. Thanks Reuters and Cointelegraph.

Putin may be a lot of things but he is incredibly well-versed in politics and economy. He is careful with his words, even if he doesn't mince them. He is also the President, he doesn't need to "call for a ban". That's so contrary to his nature. An American president would do that, certainly not Putin.

[Kakmakr]

Mark my words, Putin will get Bitcoin banned and then he will support Ethereum, because he already met with Vitalik earlier this year. Putin has a history of getting rid of his competition and Bitcoin might be seen as the competition for his other hidden agendas.

Let's see if I was right about this or if this was simply fud, time will tell very soon. ^smile^

This is what the original "hearsay" "article" that I have read here in bitcointalk. It says that since Russia has a very low electricity fee they will use that opportunity to mine bitcoins and create their own coins, If this is true then it is smart of putin to support the living coin and already established trust which is ethereum. In my opinion this not just a simply or ordinary FUD.

What is a "living coin"? The SEC already indicated that they are going to investigate Crypto currencies that seem to be fraudulent, to protect the consumers. Ethereum has all the characteristics of a scam coin or a security fraud as some has defined it.

As I read more articles about this, it seems as though Putin's words or intentions were misinterpreted and the media were just hunting for some sensationalism again. One journalist on crack quoted him wrong, and FUD followed after that.

They will not ban Bitcoin <because that would simply be stupid>, but they might introduce some pretty strict regulations to control it.

[Nameless27]

Again a media manipulation that is infested with motives. Misinterpretation is not ideal or being used abusively by those agency that has the history to even hate or discredit for they’re own agenda.

Russia and President Putin is a supporter of cryptocurrency and bitcoin eventhough they have the chance to meet someone behind ethereum is it the proof already for this. They’re not using it for teeing the truth but to give uncertainty to the community again.

Is it coincidental or timely for a 5000$ price that they want panic be driven for it not to surpass this wall. Let see.

[checkmate25]

Yeah i do agree it's just a misinterpretation. Putin even talked to vitalik as I remember. they have their plans too. lets hope for the best