Russia legalizing Bitcoin and cryptos but not allowed as payment method?

[gentlemand]

Bleurgh.

They're so full of shit and have spouted so much shit it's barely worth paying any attention any more.

I guess this is a pragmatic choice for a dictatorship filled with suckling assholes lining their pockets but I'll believe it when I see it.

[Darker45]

So if I understood it correctly, they are actually trying to prevent peer-to-peer transactions...

I haven't read the entire bill but I don't think they are actually trying to prevent peer-to-peer transactions. Because how can they do it?

As far as my understanding is concerned, by not allowing it as a payment method they do not recognize it as a legal tender or as a money. And this is nothing strange. I mean, our country does not recognize Bitcoin as a legal tender either. Bitcoin is not a legal money here.

We are buying and selling Bitcoin, sending and receiving it, sometimes in and out of the country but not in fact as money. Bitcoin simply acts as sort of carrier of value.

[Janation]

It is just like informing the country about cryptocurrencies.

If they don't allow it as a payment method, I guess they are wanting to introduce it as an asset, I guess that is why they are also letting their local to create cryptocurrencies. That is my opinion though.

[Jeobox]

Sounds like a bunch of old people trying to legislate something they don't understand.

[verita1]

Perhaps it is because it is not a definitive project for the reason that cryptocurrencies will not be allowed in Russia as a payment method yet.

I also see that lawmakers are interested in the law allowing Russian companies to issue stablecoins tied to the price of the US dollar. One thing if it is true Russia wants to digitize currencies and it is an interest that is happening in several nations.

Which highlights that the traditional banking system is showing that it needs a restoration to provide an efficient service in finances and in the economy.

[Argoo]

Really strange decision - if they are scared that Bitcoin will undermine ruble, why allow trading? If they are not scared, why ban payments? Russia yet again is being paranoid for no reason.
This decision makes me think that there will be very serious surveillance around their legal exchanges, and if I were in Russia, I would prefer to trade only on decentralized exchanges.

Like with the recent news from China, it's a net positive, but it's not huge. Still, would be nice if the "at least not banned" trend will continue.

In fact, such a decision is very positive for Russia and there could not be a more favorable solution for cryptocurrency so far. The Russian Constitution says that the only means of payment in the country is the ruble. Therefore, it was even proposed to establish criminal liability for the use of cryptocurrency as a means of payment. Only in the second reading was the criminal and administrative liability for this excluded. In order to allow the use of cryptocurrency as a means of payment,   first need to change the Constitution of Russia, and now no one will go for it.

[Zackgeno96]

If they prohibit the use of bitcoin as a payment method, then bitcoin users have to convert and trade it to fiat first for something that they have purchased. Russians will look to the positive news that the fact this bill is for the adoption of bitcoin for trading.

The last part of the news is about Russia's central bank being charged as the regulator for most crypto that will land on their country. That will be the other country's move if they adopt and regulate bitcoin.

It will be big news if it's finally a law.

The Russians can even use the crypto debit cards which are now pretty cheap if we compare them to the times when they were pretty new in the market and were a lot costly than now. Also, I recently saw a news in which it was stated that the Russian government is looking forward to building their own cryptocurrency, so maybe this can be the reason to why they aren't legalizing the payments with bitcoins locally as they want their cryptocurrency to be widely used in their country rather than encouraging people to use bitcoins for payment.  Once the Russian crypto will reach mass adaption in their country then they would most probably change the law and might allow the local bitcoin payments.

[tsaroz]

Their concern is same as every government. They want full control over the money in the nation. Taxes are one of the largest income for the government and going crypto may make it easier to hide a trade ever happen or ever got paid.
The reason they want crypto are also the same. The government don't want people and other nation what trades and payments they are doing nationally and internationally. It's also a tool to escape embargo on Russia.

[Rafael_Carrero]

Sounds like a bunch of old people trying to legislate something they don't understand.

That's true. Russian government considers Bitcoin as shadow economy payment method. They believe that Bitcoin is mostly used for buying drugs.

[gentlemand]

Sounds like a bunch of old people trying to legislate something they don't understand.

But it might be enough to achieve their aims. Forbidding its use as a payment medium won't deter a small number of people who were never going to be deterred regardless, but it is enough to turn off most of the population and that's what they'll want.

They need to pair it with stopping exchanges in Russia as well.

China has done the same and had they not done that it would be a much more powerful presence there.

[Benefactor]

I've read a few news feeds about Russia before, but I haven't found any. Most of them were misinformation and fake news. Russia legalizes bitcoin and cryptocurrencies but does not approve them as payment methods. This is because the Russian government does not want the people of their country to convert bitcoin and cryptocurrencies into Russian currency. But if the Russian government approves cryptocurrency, it will be good news for the country.

[Artemis3]

Its one of the stupidest things you could imagine, but I'm not surprised. Putin wants his own crypto...

Of course, this means that "possession" in theory isn't illegal, But people doing transactions would need to be more careful, and preferably cover their tracks pretty much the same way as if they banned it altogether.

Until all the old fools leave, the politicians will always find ways to make everyone's lives miserable. Removing the idea that the State can intervene the money at anytime, is fundamental to stop them outlawing the very thing that could save everything.

But as i have always said: Any country that bans Bitcoin, simply is banning wealth that goes around to their neighbors. Let Putin drown with his own unwanted coin while the wealth of bitcoin flows elsewhere.

Drugs? Laundering? 10 years and they are still using those silly arguments? As if their mafias didn't use their fiat money (Rubles or whatever its called).

[audaciousbeing]

Okay so months ago, we thought that they're all set to lay down the axe on Bitcoin and cryptocurrencies in Russia. But right now, lawmakers have passed a bill to legalize cryptocurrencies in their country.

However, there's one section of the bill states that Bitcoin cannot be used as payment method. They do legalize cryptocurrency trading though, but not sure when it comes to crowdfunding, ICOs, etc.

Source: https://cointelegraph.com/news/russian-lawmakers-finally-pass-countrys-major-crypto-bill

Any reactions so far guys?

Every country will do what they believe it's best for their country and economy at the same time not left behind in what is term the technology of the future. Policies change, laws are repealed and new laws are made to reflect current happenings which is why I am not perturbed because it's a process to full adoption. Now is recognition and it's still a win from where crypto is coming from for the past ten years.

[Rengga Jati]

However, there's one section of the bill states that Bitcoin cannot be used as payment method. They do legalize cryptocurrency trading though, but not sure when it comes to crowdfunding, ICOs, etc.

This is the same as in my country. Bitcoin and other cryptocurrencies are legal as the digital asset. But they are not legalized as the payment method. It means that every transaction that uses the crypto is still considered illegal and it breaks the rule. therefore, in my country, there is still no shop or eCommerce or service that pays with crypto.

I think it is not a problem. This is a good beginning that Btc has been legal. I think that it may need more time about the crypto to be accepted fully in every country. So, be patient for it and never think negatively about what the government does.

[qory]

Waiting step by step how bitcoin will got legalizing in some country, I think is enough for early step for bitcoin as legal although not for payment method, just waiting several months later will get positive respond from Russian government to make bitcoin not only legal as investing but could be legalizing as payment currency.

[pooya87]

but not sure when it comes to crowdfunding, ICOs, etc.

most probably never.
a lot of countries have already made their decisions a long time ago and banned ICOs and any other form of scams that may take place under a different name to disguise the fact that it is an ICO.
considering the fact that the main use case of ICOs is for illegal activities including scamming newbies, it is a reasonable move too.

[bryant.coleman]

It is just like informing the country about cryptocurrencies.

If they don't allow it as a payment method, I guess they are wanting to introduce it as an asset, I guess that is why they are also letting their local to create cryptocurrencies. That is my opinion though.

I guess they will end up like China, where Bitcoin is not allowed for payments and trading between fiat cash and cryptocurrency is not allowed. I wasn't expecting much anyway, because it will be too much to expect if we want Russia to have laws similar to Japan or South Korea regarding cryptocurrency. But then, if Bitcoin becomes 100% legal in Russia, then I hope that it will being much relief for the cryptocurrency users, who face a lot of uncertainty regarding the tax issues.

[MCobian]

Russia is a country that often changes rules related to cryptocurrency, really disappointing Bitcoin and crypto is prohibited as a payment
method in Russia. This could be detrimental to the development of Bitcoin and cryptocurrency, which was Satoshi Nakamoto's initial goal
creating Bitcoin is indeed planned as an alternative payment from fiat currency. Now Russia has not allowed it, which is not profitable for
Bitcoin and cryptocurrency.

[witcher_sense]

Russian way to legalize bitcoin seems very complicated to me to fully comprehend what it is all about, what goals they are trying to pursue, everything is obscured and the whole situation is uncertain. What is legalized bitcoin means to government if citizens cannot buy it legally with state money - ruble? More than that, it is not allowed to even talk about bitcoin on the widely known cryptocurrency forums such as Bitcointalk? I must remind you that this fotum is officially blocked by Roscomnadzor. Read this thread for more information, the situation has not changed since then https://bitcointalk.org/index.php?topic=5235546.0

Should this be considered adoption of bitcoin if bitcoin resources are constantly being blocked in Russia?

[fiulpro]

There is one thing to keep in mind :

The Russian Government understood the fact that Bitcoins is going to stay here for a long time and if they keep doing this , ignoring the existence and banning it for the long run , at the end of the day they will be two steps backward from everyone else.

Therefore they legalised the cryptocurrencies. First they weren't even sure about legalizing it , give them time. Given the right opportunities I do think soon enough the people will privately try using Bitcoins as a payment and grow their business in the shadows and Government might display fine or even KYC .

It is a good news for the time being.

ICO's and startups needs a good platform this it's very essential that they try and think about the impact it will have on people , the opportunities they will get therefore let's wait and see how it turns out.

Let's see the timeline:

https://www.crypto-news-flash.com/russia-new-law-foresees-total-ban-of-bitcoin-and-cryptocurrencies/

https://news.bitcoin.com/russian-ministry-slams-bill-to-ban-crypto-easy-to-bypass-creates-black-market/

https://news.bitcoin.com/russia-law-criminalizes-buying-bitcoin-7-years-jail/