Russian Central Bank Admits It Can’t Ban Bitcoin

[handy_hotdog]

The Director of the Bank of Russia’s legal department has admitted that Bitcoin and other cryptocurrencies cannot realistically ever be banned in the country.

Although cryptocurrencies are not exactly legal in Russia, it seems like they won’t ever be banned, either. That’s the latest news from the Russian government. Although Russia has a love hate relationship with crypto and bitcoin, what do you think about this admission? I think personally no bank can control it, but they don't admit it.

What do you think about this? If you want to read the full article, you can click on the link below

https://beincrypto.com/russian-central-bank-admits-it-cant-ban-bitcoin/

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[Ozero]

A few days ago, the same head of the legal department of the Central Bank of Russia Alexey Guznov said that soon the adopted law on digital financial assets will be amended and cryptocurrency circulation in Russia will be prohibited, except for its storage. Penalties will be applied to violators. Therefore, it is too early to rejoice or upset. The information of senior officials about cryptocurrency is so contradictory that it is difficult to comment on anything yet. One thing is clear: the Russian government does not want to legalize cryptocurrency and allow its citizens to freely use it. We must expect the adoption of an appropriate law.

[stompix]

And at the same time, the same websites link to the Russian version where they say:

There will be no legalization

One of the most controversial issues remains the issue of legalization and circulation of cryptocurrency on the territory of the Russian Federation. According to Guznov , the position of the mega-regulator in this regard has not changed. In other words, the Central Bank of the Russian Federation is confident that cryptocurrency is actively used in money laundering and financing illegal activities, and its legalization will jeopardize financial stability and weaken consumer protection.

(google translate)

So basically they can't stop people from holding bitcoin but at the same time, there will be no way for them to make legal purchases and no way for shops to accept bitcoin payments legally.

So they can't ban it but they can make it almost useless.
What can the average Russian who doesn't know anyone outside the country and does not send money or receive from abroad do with them?
Buy coins from a western exchange, wiring money and then when it needs fiat to sell them and receive fiat again via a traceable bank transfer?

If they put a ban on purchasing and usage in the legal way  the effects would be devastating, and if the penalties include jail time, who will risk it?

[AGD]

...

If they put a ban on purchasing and usage in the legal way  the effects would be devastating, and if the penalties include jail time, who will risk it?

The rest of the world...

[avikz]

...

If they put a ban on purchasing and usage in the legal way  the effects would be devastating, and if the penalties include jail time, who will risk it?

The rest of the world...

Absolutely! Bitcoin doesn't need Russia to thrive. Rather Russians need bitcoin to live a better life under the dictatorship of Putin. Initially India also thought of taking the same route but later everything changed after the court verdict. I am glad that Russian Central Bank at least acknowledged the truth, that bitcoin can't be banned in practicality!

If Russia bans it, some other countries will gain the businesses and opportunities. Either you adopt or live under the rock!

[Sanugarid]

...

If they put a ban on purchasing and usage in the legal way  the effects would be devastating, and if the penalties include jail time, who will risk it?

The rest of the world...

Absolutely! Bitcoin doesn't need Russia to thrive. Rather Russians need bitcoin to live a better life under the dictatorship of Putin. Initially India also thought of taking the same route but later everything changed after the court verdict. I am glad that Russian Central Bank at least acknowledged the truth, that bitcoin can't be banned in practicality!

Coz they know what the decentralization looks like, but atleast in the end they admit it that even if they legally ban the bitcoin they cannot control their people from using so what's the purpose? After all these years of having bitcoin I believe one of its strongest ally is the russian citizens but not its government. Seems like Putin and its hands know what it could cost them if they do harsh things on bitcoin.

If Russia bans it, some other countries will gain the businesses and opportunities. Either you adopt or live under the rock!

Yes it would, just don't be silly on the other stuffs, if you know what I mean haha.

[dothebeats]

No plans to legalize yet also stated that they cannot prevent it fully? So basically we're looking at a stalemate in here wherein bitcoin can only be stored, but cannot be used anywhere apart from transferring it from one wallet to another. That sounds like wasted opportunity for me, and if anything, the underground economy of bitcoin in Russia will likely thrive with the government not getting any of it.

Russia is like the 2015 China in here it seems. Playing mind games on their own and can't decide whether to fully ban bitcoin, utilize it or jist leave it stagnating.

[Artemis3]

The Director of the Bank of Russia’s legal department has admitted that Bitcoin and other cryptocurrencies cannot realistically ever be banned in the country.

Although cryptocurrencies are not exactly legal in Russia, it seems like they won’t ever be banned, either. That’s the latest news from the Russian government. Although Russia has a love hate relationship with crypto and bitcoin, what do you think about this admission? I think personally no bank can control it, but they don't admit it.

What do you think about this?

Hmm surprising pragmatism. Surely a technician, engineer or studied in some field, not your average (clueless) politician...

Well having no position is better than going against it. "Legalization" can be a double edged sword, once the "ignorant" politicians want to tax or restrict it before finding out that with bitcoin its realistically impossible to do (accurately anyway).

[Sendoku]

Duh. Bans just don't work, even if they do. I mean, you can take a certain amount of control, but the demand won't go anywhere

[Darker45]

This reminds me of a similar helpless admission in the US last year. This seems to be just a rephrase of what the US lawmaker stated, that Bitcoin "is an unstoppable force."

And so whether you ban it or not, regulate it or not, accept it or not, Bitcoin will continue to grow and be adopted by the people.

So, what is the next best thing to do about Bitcoin? Well, whatever it is, the US lawmaker added, “We should not attempt to deter this innovation; governments cannot stop this innovation, and those that have tried have already failed.”^[1]

People in position are now beginning to show some sense.

[1] https://cointelegraph.com/news/bitcoin-an-unstoppable-force-us-congressman-tells-crypto-hearing

[hatshepsut93]

...

If they put a ban on purchasing and usage in the legal way  the effects would be devastating, and if the penalties include jail time, who will risk it?

The rest of the world...

Stompix obviously meant "who will risk it [in Russia]". And it's a valid concern, because businesses won't be using it, there won't be exchanges to safely buy coins, and p2p trading is full of scammers. Yes, on a global scale Russia is insignificant to Bitcoin, it was never a major adopter of it anyway, but sadly 150 million people will have to overcome significant obstacles if they'll ever try to use Bitcoin. And maybe some of Russia's neighbors will decide to do the same, just because smaller countries often follow the bigger countries in new policies.

[henrydezeden]

That's interesting. Cryptos are not legal but also not illegal. It should be that. Cryptos should to be considered as legal currencies in all countries.

[akirasendo17]

may they want to say they can't control people to use bitcoin, since they can't monitor the transactions of a person, at the same time for what i have experience the more you stop people on doing things they wan't they will keep on doing it, maybe they should go with the flow and take profit the least they can do, its already been started and stopping it now is too late, bitcoin has already known, and a lot of large companies are using it , and the technology so it will go on, even if they ban it .

[AGD]

...

If they put a ban on purchasing and usage in the legal way  the effects would be devastating, and if the penalties include jail time, who will risk it?

The rest of the world...

Stompix obviously meant "who will risk it [in Russia]". And it's a valid concern, because businesses won't be using it, there won't be exchanges to safely buy coins, and p2p trading is full of scammers. Yes, on a global scale Russia is insignificant to Bitcoin, it was never a major adopter of it anyway, but sadly 150 million people will have to overcome significant obstacles if they'll ever try to use Bitcoin. And maybe some of Russia's neighbors will decide to do the same, just because smaller countries often follow the bigger countries in new policies.

Can you imagine that I understood exactly what he meant?

[mk4]

Stompix obviously meant "who will risk it [in Russia]". And it's a valid concern, because businesses won't be using it, there won't be exchanges to safely buy coins, and p2p trading is full of scammers. Yes, on a global scale Russia is insignificant to Bitcoin, it was never a major adopter of it anyway, but sadly 150 million people will have to overcome significant obstacles if they'll ever try to use Bitcoin. And maybe some of Russia's neighbors will decide to do the same, just because smaller countries often follow the bigger countries in new policies.

People will probably have to buy bitcoin in person the way how people buy drugs, or probably through the deepweb. An illegalization of bitcoin will definitely have a negative effect, but I don't think it would be THAT bad. You're far likely to get caught buying drugs but yet it's safe to assume that a good number of people in Russia are still buying them.

[senin]

In Russia, it’s difficult now to live through a policy of confronting the Putin government to the whole world. If they still legally ban the population from using cryptocurrency, this may be one of many reasons why Putin will lose his power in the future.
Well, even if they’re already being quickly identified, because this uncertainty and talk over the past few years about contradictory statements in Russia regarding the legalization of cryptocurrencies is already pretty tired. Let them at least do something.

[Argoo]

Judging by how everything happens in Russia in relation to cryptocurrency, there it will nevertheless be officially banned for use by citizens of this country. Only if the general dissatisfaction with Putin’s regime is too big due to the current drop in prices and hunger riots just ripen, only in this case they can allow the free circulation of cryptocurrency. Recent events taking place in Russia indicate that such a scenario is absolutely possible.

[figmentofmyass]

And at the same time, the same websites link to the Russian version where they say:

There will be no legalization

One of the most controversial issues remains the issue of legalization and circulation of cryptocurrency on the territory of the Russian Federation. According to Guznov , the position of the mega-regulator in this regard has not changed. In other words, the Central Bank of the Russian Federation is confident that cryptocurrency is actively used in money laundering and financing illegal activities, and its legalization will jeopardize financial stability and weaken consumer protection.

(google translate)

So basically they can't stop people from holding bitcoin but at the same time, there will be no way for them to make legal purchases and no way for shops to accept bitcoin payments legally.

So they can't ban it but they can make it almost useless.

it would still be useful for p2p, b2b, cross-border, black market, and under-the-table transactions. there must be a market for that. and most importantly, speculation. plus if the demand is there, i think merchants would accept it anyway.

what percentage of bitcoin usage do you think is legal retail commerce anyway? it's probably fairly low.

[btc_love]

In Russia, it’s difficult now to live through a policy of confronting the Putin government to the whole world. If they still legally ban the population from using cryptocurrency, this may be one of many reasons why Putin will lose his power in the future.

Those who actively support him, most likely do not even know the word "cryptocurrency" or consider it a dirty trick of the State Department. So no, this will hardly shake his position among the electorate.

[witcher_sense]

However, he did say that cryptocurrencies are being actively used for money laundering and illegal activities.

He also stressed that cryptocurrencies are “not money.”

This is very interesting part. They claim that bitcoin and other cryptocurrencies are being used in criminal activities. One of the definition of criminal activity may be considered buying and selling something illegal. It's quite obvious, but not for Central Bank. If criminals use bitcoin for facilitating illegal exchanges, then bitcoin can be called "money". If bitcoin weren't such good money, it wouldn't be used in any activities, including criminal activities. Bankers contradict themselves when give value to bitcoin and deprive value of it at the same time.