[2014-07-02] Russia Softens Stance on Bitcoin

[_smudger_]

http://online.wsj.com/articles/russia-softens-stance-on-bitcoin-1404305139

July 2, 2014 8:45 a.m. ET
Russian authorities have softened their tone on Bitcoin; the central bank now says it won't hamper the usage of the virtual currency whereas previously it had vowed to crack down on the electronic payment instrument.

The Bank of Russia is now accumulating information about so-called crypto-currencies and is not blocking Bitcoin, the central bank's first deputy chairman Georgy Luntovsky said Wednesday.

"At this stage we need to watch how the situation develops with these kinds of currencies. These instruments should not be rejected," Mr. Luntovsky said.

Earlier this year the central bank warned that using Bitcoins to buy goods, services or real currencies would be viewed as a potential involvement in dubious operations and financing terrorism.

Russia's general prosecutor also said earlier this year that Russian law said the ruble is the only official currency and using "money substitutes" such bitcoins is illegal.

Bitcoin has fallen under increasing scrutiny around the world amid concerns it could be for illegal activities. Bitcoins are an increasingly popular currency to carry out electronic transactions, as some users say they are cheaper and faster than using credit cards or money transfers.

‪Mr. Luntovsky admitted that there was evidence that Bitcoin had been used in Russia to pay for drugs and weapons.

‪"It turns out that criminals start to use everything new," Mr. Luntovsky said.

[PatMan]

‪Mr. Luntovsky admitted that there was evidence that Bitcoin had been used in Russia to pay for drugs and weapons.

I'm sure that every other currency has been used to buy drugs & weapons - let's ban those too........

[ArticMine]

Interesting coincidence with the US government auction. Looks like this auction got someone in the Kremlin to take notice of Bitcoin.

[bryant.coleman]

‪Mr. Luntovsky admitted that there was evidence that Bitcoin had been used in Russia to pay for drugs and weapons.

I'm sure that every other currency has been used to buy drugs & weapons - let's ban those too........

There are some 2 million drug addicts in Russia and it is very easy to buy drugs in any part of that country. You don't need Bitcoins to do that. The business is mostly done by the Azeris, with the help of Tadzhik goons. The cops are extremely corrupt and they turn a blind eye to this. Even the members of Putin's United Russia party are deeply involved in drug trafficking.

[PatMan]

‪Mr. Luntovsky admitted that there was evidence that Bitcoin had been used in Russia to pay for drugs and weapons.

I'm sure that every other currency has been used to buy drugs & weapons - let's ban those too........

There are some 2 million drug addicts in Russia and it is very easy to buy drugs in any part of that country. You don't need Bitcoins to do that. The business is mostly done by the Azeris, with the help of Tadzhik goons. The cops are extremely corrupt and they turn a blind eye to this. Even the members of Putin's United Russia party are deeply involved in drug trafficking.

Same as any other country then........

[PolarPoint]

Russia is in the game and still China to go. 2014 is going to be a bitcoin year afterall!

[ArticMine]

‪Mr. Luntovsky admitted that there was evidence that Bitcoin had been used in Russia to pay for drugs and weapons.

I'm sure that every other currency has been used to buy drugs & weapons - let's ban those too........

There are some 2 million drug addicts in Russia and it is very easy to buy drugs in any part of that country. You don't need Bitcoins to do that. The business is mostly done by the Azeris, with the help of Tadzhik goons. The cops are extremely corrupt and they turn a blind eye to this. Even the members of Putin's United Russia party are deeply involved in drug trafficking.

Same as any other country then........

Not really. One drug that is common in Russia is krokodil (Desomorphine) and to be blunt this has to be among the deadliest most addictive drugs around. The typical life expectancy of an addict is under 2 years.
https://en.wikipedia.org/wiki/Desomorphine
http://english.pravda.ru/hotspots/crimes/23-06-2011/118296-desomorphine-0/
http://lightbox.time.com/2013/12/05/the-worlds-deadliest-drug-inside-a-krokodil-cookhouse/#1

[Chef Ramsay]

Good to have an official edict on this from Moscow to end all the uncertainty in the market about a possible Russian addition to the market. Considering the gamesmanship that's been going on lately, it would be ridiculously cool to not only have Russians in on the market but to potentially have them trading w/ other countries in Bitcoin at some point.

[Ron~Popeil]

This is definitely good news. That is a huge population that will suddenly become much more involved in bit coin. Now we just need Beijing to get their heads of their collective asses.