[2014-02-04] BTC-e Downplays Concerns of New Russian Criminal Investigation

[Arvicco]

http://www.coindesk.com/btc-e-concerns-russian-criminal-investigation/

When I quoted the news that Bitcoin is banned in Russia, some people instructed me to "stop spreading FUD". In their opinion, Bank of Russia issued just another boring "warning" similar to other world central banks. Well, recent events in Russia just confirm my initial take. All the above-ground businesses in Russia that accepted (or previously had plans to accept) cryptocurrency already made statement that they stopped accepting it. Officials indicated that any business either accepting or exchanging currency will be prosecuted for "money laundering and terrorism financing".

Now, this "warning" turned into a legal action - major bitcoin exchanges in Russia are under criminal investigation. Anyone who thinks that anonymity of BTC-E owners Alexey and Alexander will protect them from FSB knocking on their doors in the next few weeks is seriously delusional. Unless they flee the country of course like most other Russian trouble-makers already did.

It is obvious that the decision of ruling Russian clique is to "kill cryptocurrencies in Russia". While I have doubts about their final success, I expect them to make a very serious effort. Let's see if the power that broke the back of political opposition that involved millions of people will be able to deal with a handful of cryptonerds and their "virtual money" as Bank of Russia put it...

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[il--ya]

I'm pretty sure the guys either already left Russia, or have a good plan how to do that in case of emergency.
As for crypto currency future in Russia - well.. It's not the first time something is prohibited in Russia. It will somewhat limit it's usefulness for legal purposes, but wouldn't limit it's expansion and all sorts of illicit use.

[notthematrix]

http://www.coindesk.com/btc-e-concerns-russian-criminal-investigation/

When I quoted the news that Bitcoin is banned in Russia, some people instructed me to "stop spreading FUD". In their opinion, Bank of Russia issued just another boring "warning" similar to other world central banks. Well, recent events in Russia just confirm my initial take. All the above-ground businesses in Russia that accepted (or previously had plans to accept) cryptocurrency already made statement that they stopped accepting it. Officials indicated that any business either accepting or exchanging currency will be prosecuted for "money laundering and terrorism financing".

Now, this "warning" turned into a legal action - major bitcoin exchanges in Russia are under criminal investigation. Anyone who thinks that anonymity of BTC-E owners Alexey and Alexander will protect them from FSB knocking on their doors in the next few weeks is seriously delusional. Unless they flee the country of course like most other Russian trouble-makers already did.

It is obvious that the decision of ruling Russian clique is to "kill cryptocurrencies in Russia". While I have doubts about their final success, I expect them to make a very serious effort. Let's see if the power that broke the back of political opposition that involved millions of people will be able to deal with a handful of cryptonerds and their "virtual money" as Bank of Russia put it...

In russia the banks are seen as a anemy by default , people dont trust it so they will use any mean to avoid it , dollars were forbidden by law in the 70 / 80 s but everybody wanted and accepted them.
same will happen with  bitcoin.

[Jacko]

It seems a real shame that by banning it they will probably force people to break the law. This means they will then tell the world, look we told you it was dodgy.

They should embrace it and not drive it's use underground.

[DStrange]

In russia the banks are seen as a anemy by default , people dont trust it so they will use any mean to avoid it , dollars were forbidden by law in the 70 / 80 s but everybody wanted and accepted them.
same will happen with  bitcoin.

This. People will always want "forbidden fruit" - add it to russian banks problem and you will receive a country with a huge BTC black market.

[bryant.coleman]

The Russian banks were supporting Bitcoin... but the government was thinking otherwise. Anyway... loss for Russia.

[act now]

The Russian banks were supporting Bitcoin... but the government was thinking otherwise. Anyway... loss for Russia.

Agreed.
It's really weird situation. Central bank of Russia backs Bitcoin, government are hating on Bitcoin... They should have similar opinions aren't they ?

[bryant.coleman]

The Russian banks were supporting Bitcoin... but the government was thinking otherwise. Anyway... loss for Russia.

Agreed.
It's really weird situation. Central bank of Russia backs Bitcoin, government are hating on Bitcoin... They should have similar opinions aren't they ?

Not really.... some of the banks such as the Sberbank were supporting Bitcoin. The government, as well as their men in the Central bank of Russia were opposing it.

[oakpacific]

Am I the only one who thinks the Russian gov is possibly serious about what they said? Sochi Olympics is upcoming and they may be genuinely worried that Bitcoin will be used to finance terrorist organizations planning to create some havocs.

So after the Olympics is over the pressure may die down a bit.

[TheButterZone]

Totalitarians will always have some excuse to infringe upon economic liberty...

[de3mka]

Interesting article posted on Vedomosti.Ru, where they discuss if it makes sense to regulate virtual currencies in Russia. What is more surprising, a president of russian bank "Sberbank" German Gref has contacted government to review recent regulations. "Bitcoins are an extremely interesting global experiment, which breaks the paradigm of money issuing", he told.  In his letter to Kremlin, Ministry of Finance and Central Bank he stated, that "banning Bitcoin would mean a step backward" and asked to limit the regulations of the currency.

http://translate.google.com/translate?hl=cs&sl=ru&tl=en&u=http%3A%2F%2Fwww.vedomosti.ru%2Fopinion%2Fnews%2F22005861%2F950

Personally I don't know many banks having such a stance towards Bitcoin.

[linuxnewbie]

Now, this "warning" turned into a legal action - major bitcoin exchanges in Russia are under criminal investigation.

This turned out not to be true.

http://volgoproc.ru/newversion/cgi-bin/run.pl?mod=news.mod&dirmod=mod&func=view&id=2332

Translation:

04.02.2014
Note to the media

The website of the prosecutor's office of Volgograd Region is being hacked. As a result, a false news report on the opening of a criminal case against internet resources was posted on the website. Until the technical issues are resolved, please check the authenticity of news stories in the press service of the prosecutor’s office of the Volgograd Region by phone on 31-04-21.

[notthematrix]

Interesting article posted on Vedomosti.Ru, where they discuss if it makes sense to regulate virtual currencies in Russia. What is more surprising, a president of russian bank "Sberbank" German Gref has contacted government to review recent regulations. "Bitcoins are an extremely interesting global experiment, which breaks the paradigm of money issuing", he told.  In his letter to Kremlin, Ministry of Finance and Central Bank he stated, that "banning Bitcoin would mean a step backward" and asked to limit the regulations of the currency.

http://translate.google.com/translate?hl=cs&sl=ru&tl=en&u=http%3A%2F%2Fwww.vedomosti.ru%2Fopinion%2Fnews%2F22005861%2F950

Personally I don't know many banks having such a stance towards Bitcoin.

Few understand here that THIS http://www.youtube.com/watch?v=Sqwd_u6HkMo is the real problem we are all facing!
and thats why I would not be to supprised if bitcoin will not be battled , because of its fact that it does not need endless growth to keep its vaulue.

[cryptoanarchist]

Looks like the governments there have bigger problems than bitcoin:

http://www.youtube.com/watch?v=stK3YPz6WTc

[hjbuell]

Few understand here that THIS http://www.youtube.com/watch?v=Sqwd_u6HkMo is the real problem we are all facing!

Brilliant! *burrrrppp!*

[Arvicco]

Russian officials deny reports as "hoax": http://www.coindesk.com/russian-prosecutors-office-btc-e-investigation-hoax/

[hjbuell]

Russian officials deny reports as "hoax": http://www.coindesk.com/russian-prosecutors-office-btc-e-investigation-hoax/

Wow, hat's off to you for following up on the piece and linking the update. Mishka makes a good krysha

[seriouscoin]

Russian officials deny reports as "hoax": http://www.coindesk.com/russian-prosecutors-office-btc-e-investigation-hoax/

Did you actually read the link? Where is this "denying" ?

Stop with your BS already asshole

[bryant.coleman]

Am I the only one who thinks the Russian gov is possibly serious about what they said? Sochi Olympics is upcoming and they may be genuinely worried that Bitcoin will be used to finance terrorist organizations planning to create some havocs.

Most of the terrorist activities in Russia are funded by the Saudi Arabian Royal Family. They don't need Bitcoins to do that. There are better options available.

[EndlessWin]

Am I the only one who thinks the Russian gov is possibly serious about what they said? Sochi Olympics is upcoming and they may be genuinely worried that Bitcoin will be used to finance terrorist organizations planning to create some havocs.

Most of the terrorist activities in Russia are funded by the Saudi Arabian Royal Family. They don't need Bitcoins to do that. There are better options available.

Heard about it too, not even once. But maybe Russia came up with Saudi Arabians like USA came up with Usama. Who knows.
Anywho, I think problem is solved for now, no news about this for quite some time.

[oakpacific]

Am I the only one who thinks the Russian gov is possibly serious about what they said? Sochi Olympics is upcoming and they may be genuinely worried that Bitcoin will be used to finance terrorist organizations planning to create some havocs.

Most of the terrorist activities in Russia are funded by the Saudi Arabian Royal Family. They don't need Bitcoins to do that. There are better options available.

Well, all I said is they maybe genuinely concerned, but they may also be utterly misinformed and are freaking out, like all your good old paranoid autocratic folks.

[Arvicco]

Heard about it too, not even once. But maybe Russia came up with Saudi Arabians like USA came up with Usama. Who knows.
Anywho, I think problem is solved for now, no news about this for quite some time.

Unfortunately, it is not solved at all. Today, Russian Attorney General office confirmed that they consider Bitcoin illegal in Russia, both for businesses and personal use: http://genproc.gov.ru/smi/news/genproc/news-86432/

The ugly and confusing story of Russian officials response to cryptocurrencies just got quite a bit uglier.

[whyinvestinbitcoin]

Here's what will happen to Russia and other countries that try to ban bitcoin:

The world will gradually but surely begin to accept bitcoin for it's many good qualities and iron out the limits such as identity, transaction volume, chargeback and speed of transactions....

As the world adopts bitcoin and central currencies are gradually faded out as a consequence, international trade will to a increasing degree decide not to trade with the Russian Rouble. It will become one of the last crap fiat currencies standing.

'Hey You. Ameriiicaaann. You take my lovely rouubles for your lovely apple iPhone 12S'.

'Sure Dude! That will be 50,000,000,000R.'

Big mistake Russia. Protectionism never works in the long term. One day you'll be making a mad dash to 'accept bitcoin' in your country and everyone else will have moved on. I see another Russian Collapse coming.... Say 2016/2017.

[Wanesst]

 They will never be able to deal with a handful of cryptonerds and their "virtual money"