Bitcoins are banned in Russia. Is Bitcoin allowed in Russia: the legality of using, storing and mining cryptocurrency Legal regulation of cryptocurrencies in Russia

The official forgot only one thing - the maximum number of coins in circulation is limited by the bitcoin system itself (more than 21 million of them cannot physically appear).

In the Ministry of Finance version of the bill, a measure of responsibility for violations with real terms of imprisonment appeared. The situation persisted until the summer of 2016, when, unexpectedly for many, the trend reversed. It turned out that blockchain technology can bring considerable benefits:

1. To speed up and simplify financial transactions.
2. When identifying users of various resources.
3. When implementing a digital signature system.
4. When working with various registers, for example, real estate or land registry.

However, adopting the technology and banning the use of bitcoin in Russia and other cryptocurrencies based on it is nonsense. As a result, amendments to the bill appeared again:

• The Ministry of Finance proposed equating bitcoin and analogues to foreign currency.
• Operators using blockchain technology and, accordingly, working with cryptocurrencies, are proposed to be released from liability.

In a word, until the bill becomes a law on the regulation of cryptocurrencies, the current state of affairs remains.

What is the real state of affairs in the relations between cryptocurrencies, the state and users in the world and in Russia?

The blockchain technology used by cryptocurrencies implies almost instantaneous execution of transactions between system participants (the time required for confirmation is not taken into account), the anonymity of operations and the impossibility of outside interference. Naturally, this is welcomed by users, as evidenced by the continuous growth in the popularity of bitcoin and similar tools, an avalanche-like increase in the number of participants.

Governments and central banks, by their very nature, cannot approve the development of such a system. However, regardless of their opinion, it has been successfully functioning since 2009. As a result, a situation has arisen where it is impossible not to react.

The reaction itself, not only in Russia, but also in the world, is far from unambiguous:

1. In the US, in July 2017, the SEC (Securities and Exchange Commission) made a decision equating an ICO with the issuance of securities. In the same place, since 2014, in taxation (according to the decision of the Internal Revenue Service, which has been in force since March 2014), transactions with bitcoin are considered as transactions with property.
2. In Canada and Australia, as in the United States, an initial offering is considered similar to the issuance of securities.
3. In Switzerland, cryptocurrencies are treated as a foreign currency. As a result, this country has become one of the most attractive options for ICOs.
4. On October 22, 2015, the European Court of Justice equated transactions in cryptocurrency with payment transactions, and, accordingly, were exempted from VAT.
5. Bitcoin is fully legalized in Japan - transactions are legal, and the decision on settlements in cryptocurrency is given to the seller and buyer.
6. In China, on the contrary, the state is confidently moving towards a complete ban on bitcoins. In September 2017, representatives of the central bank made a statement that the vast majority of ICOs (we are talking about more than 90%) can be classified as illegal financial activities, and banned the initial placement.
   

   Moreover, there was information that all Chinese cryptocurrency exchanges are required to cease operations by September 30th.

In a word, the whole range of reactions is present in the world - from complete permission to a complete ban on operations.

The current situation of bitcoin in Russia: what is prohibited and what is legal

There is no reason to say that cryptocurrency is prohibited on the territory of the Russian Federation. Accordingly, what is not prohibited is allowed, but:

• The official status of bitcoin and other cybermoney does not yet exist;
• The Russian ruble remains the only legal means of payment in the country, so the answer to the question of whether it is legal or not to pay with cryptocurrency for purchases in Russia is unequivocal - NO!
• In accordance with the above legislative acts, the mining of bitcoin and other crypto-money in the country can be considered (if the user's equipment or farm is located here) an illegal operation.
• Citizens are not prohibited from buying bitcoin and analogues for rubles or foreign currency.
• There are also no restrictions on the creation of appropriate electronic wallets and the use of digital currencies as a means of accumulation.
• Settlements on foreign sites that accept bitcoin do not fall under the jurisdiction of the Russian Federation, so all purchases in such online stores and on trading floors for bitcoins or other cryptocurrencies are carried out by Russian citizens on a legal basis.

Perhaps, with the adoption of the law on the regulation of cryptocurrencies, the situation will change.

The information that got into the media allows us to conclude that the attitude towards the subject of discussion at the highest level has changed. The main requirement was the creation of a regulatory environment that, without creating "unnecessary barriers", will protect the interests of all participants in the process.

For the first time, such funds were recognized as "innovative financial instruments", their role in the financial system. Most likely, the issue of banning cryptocurrencies is finally removed from the agenda. But how the regulation will be implemented, perhaps, will become known soon enough.

After the Bitcoin exchange rate consistently updated several highs, confidently breaking through the $5,000/BTC mark, and exceeding $6,000 per coin in peaks, Russians who want to get their share of the excess profits began to complain more and more about the fact that bitcoins are banned in Russia. At the same time, people who constantly work on the network and, by the nature of their activities, regularly encounter cryptocurrencies, argue that the legislation of the Russian Federation does not say about the prohibition of bitcoins (as well as other coins). What is the real status of cryptocurrency and is bitcoin banned in reality?

The history of the legality of Bitcoin in Russia and the world

The opinion about the prohibition of bitcoin by law is based on periodically appearing high-profile statements by statesmen about the inadmissibility of the free circulation of bitcoin and other cryptocurrencies. It did not start yesterday - the question, like the very problem of prohibiting cryptocurrencies (and on a global scale) has a long history. But first, about the situation in Russia.

Can bitcoin be banned in Russia

The epic with the possible restriction of the use (and complete circulation) of bitcoin in the country began in 2014.

Then, in the messages about representatives of the Central Bank of the Russian Federation, for the first time, words were heard about bitcoins and, in general, about cryptocurrency, as a surrogate for money. The reason for this attitude was the fact that the generation of bitcoins and other coins is carried out, in most cases, anonymously; blockchain technology does not allow obtaining real information about the participants in the process. It also prevents the introduction of centralized control and regulation in such a system. In addition, a number of questionable bitcoin transactions were mentioned.

A little later, similar statements were made by representatives of the Prosecutor General's Office. Their words were officially voiced after a meeting of experts, at which officials from law enforcement agencies (the Prosecutor General's Office, the FSB and the Ministry of Internal Affairs) spoke about the need to take measures to protect the financial sector.

In light of such statements, the legality of bitcoin has indeed come into question.

Really, Part 1 Art. 75 of the Constitution of the country says that the issue of any money other than the national currency (Russian ruble) is prohibited in the Russian Federation, and only the Central Bank has the right to these operations. Moreover, the use by officials of the concept of "surrogate" could become a direct reason for the fact that bitcoin would be banned in the Russian Federation - according to the current legislation, it is forbidden to issue monetary surrogates in Russia (it is said in Art. 27 of the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" 86-FZ adopted on July 10, 2002).

However, in the first case, the statement was announced only by the press service of the Central Bank, and, accordingly, was of an informational nature, and was not issued as a binding document (order). The text only mentioned recommendations to refrain from using cryptocurrencies. As for the statement of the GP, it appeared exclusively in the news feeds, which in itself indicates the non-binding nature of the recommendations.

Passions did not subside on this - the Gosnarkokontrol picked up the baton. Literally a month after the above statements, this department reported that cryptocurrencies, including Bitcoin, are actively used to buy drugs, being practically the main means of payment for drug dealers.

All this led to the emergence of an initiative of the Ministry of Finance, which proposed to develop bill on regulation of cryptocurrencies. It should define the “money surrogate”, and establish prohibitions and penalties for violators. As grounds, theses were put forward about the lack of Bitcoin security and its instability relative to other currencies.

The arguments are, frankly, weak.

1. The times of the "gold standard" when any currency was backed by precious metals is long gone. Moreover, most of them are not even provided with goods or services. A vivid example of this is the most demanded world currency (the US dollar), which is actually issuing the FRS without control, which has the status of a private organization.
2. There is no need to talk about the stability of some currencies relative to others - since the beginning of the century, almost every one of them has demonstrated ups and downs in rates of tens of percent.

Actually, the bill was rejected at the stage of discussion. The Ministry of Economic Development announced that the wording was vague, which could lead not so much to streamlining the issue with cryptocurrency, but to problems in the marketing programs of start-ups and large companies, and disruption of the work of financial structures.

The first law on cryptocurrency in Russia

The fact of a direct ban on bitcoin in Russia was noted in September 2014. Although this event was only of a local nature - the city court of Nevyansk, Sverdlovsk Region, ruled to block resources related to bitcoin mining and circulation (Bitcoin.it, Bitcoin.org, etc.), a precedent appeared in judicial practice.

It should be said that the ban did not last long - in 2015, the Sverdlovsk Regional Court overturned the decision of a lower body.

In fact, this ban so far remains the only one in the history of bitcoin in Russia.

What will be the use of bitcoin: criminal liability?

In 2015, the Ministry of Finance presented a revised bill. It turned out to be much tougher than the previous one, and provided for real responsibility for the use of cryptocurrencies in general and bitcoin in particular.

The tightening trend continued into the next year, 2016.

The head of the Investigative Committee of the Russian Federation, A. Bastrykin, advocated harsh penalties for those who use bitcoin and its analogues. The arguments were not new - again there were words about the ideal tool for fraudulent activities and speculative transactions, the possibility of issuing by private individuals anonymously and without restrictions. The official forgot only one thing - the maximum number of coins in circulation is limited by the bitcoin system itself (more than 21 million of them cannot physically appear).

In the Ministry of Finance version of the bill, a measure of responsibility for violations with real terms of imprisonment appeared.

The situation persisted until the summer of 2016, when, unexpectedly for many, the trend reversed. It turned out that blockchain technology can bring considerable benefits:

• To speed up and simplify financial transactions.
• When identifying users of various resources.
• When implementing a digital signature system.
• When working with various registers, for example, real estate or land registry.

However, adopting the technology and banning the use of bitcoin in Russia and other cryptocurrencies based on it is nonsense. As a result, amendments to the bill appeared again:

• The Ministry of Finance proposed equating bitcoin and analogues to foreign currency.
• Operators using blockchain technology and, accordingly, working with cryptocurrencies, are proposed to be released from liability.

In a word, until the bill becomes a law on the regulation of cryptocurrencies, the current state of affairs remains.

Legal status of bitcoin today: allowed or prohibited?

What is the real state of affairs in the relations between cryptocurrencies, the state and users in the world and in Russia?

World practice: foreign experience in legalizing and prohibiting cryptocurrencies

The blockchain technology used by cryptocurrencies implies almost instantaneous execution of transactions between system participants (the time required for confirmation is not taken into account), the anonymity of operations and the impossibility of outside interference. Naturally, this is welcomed by users, as evidenced by the continuous growth in the popularity of bitcoin and similar tools, an avalanche-like increase in the number of participants.

Governments and central banks, by their very nature, cannot approve the development of such a system. However, regardless of their opinion, it has been successfully functioning since 2009. As a result, a situation has arisen where it is impossible not to react. The reaction itself, not only in Russia, but also in the world, is far from unambiguous:

• In the US, in July 2017, the SEC (Securities and Exchange Commission) made a decision equating an ICO with the issuance of securities. In the same place, since 2014, in taxation (according to the decision of the Internal Revenue Service, which has been in force since March 2014), transactions with bitcoin are considered as transactions with property.
• In Canada and Australia, as in the United States, an initial offering is considered to be similar to the issuance of securities.
• In Switzerland, cryptocurrencies are treated as a foreign currency. As a result, this country has become one of the most attractive options for ICOs.
• On October 22, 2015, the European Court of Justice equated transactions in cryptocurrency with payment transactions, and, accordingly, were exempted from VAT.
• Bitcoin is fully legalized in Japan - transactions are legal, and the decision on settlements in cryptocurrency is given to the seller and buyer.
• In China, on the contrary, the state is confidently moving towards a complete ban on bitcoins. In September 2017, representatives of the central bank made a statement that the vast majority of ICOs (we are talking about more than 90%) can be classified as illegal financial activities, and banned the initial placement. Moreover, there was information that all Chinese cryptocurrency exchanges are required to cease operations by September 30th.

10 countries where bitcoin is banned

There is no reason to say that cryptocurrency is prohibited on the territory of the Russian Federation. Accordingly, what is not prohibited is allowed, but:

• official status bitcoin and other cyber money does not exist;
• The Russian ruble remains the only legal means of payment in the country, so when asked whether legal or not to pay with cryptocurrency for purchases in Russia, the answer is clear - NO!
• In accordance with the above legislation mining bitcoin and other crypto-money in the country can be considered (if the user's equipment or farm is located here) illegal operation.
• Citizens not prohibited buy bitcoin and analogues for rubles or foreign currency.
• Same way there are no restrictions to create appropriate electronic wallets and the use of digital currencies as a store of value.
• Settlements on foreign sites that accept bitcoin do not fall under the jurisdiction of the Russian Federation, respectively, all purchases in such online stores and on trading floors for bitcoins or other cryptocurrencies are carried out by Russian citizens legally.

Perhaps, with the adoption of the law on the regulation of cryptocurrencies, the situation will change.

Greetings to my dear readers! In the office building where I work, I spotted one very interesting office. Even though it's pretty chilly outside, they always have fans running.

And the other day, I finally realized what they are doing - mining bitcoins! There are a lot of video cards, a lot of heat, but I still won’t ask if there is a lot of revenue from this business. When I find out, I will definitely share. In the meantime, I propose to talk in general terms: is bitcoin allowed in Russia in principle, for example. Read more in my article!

Is bitcoin allowed in Russia

Against the backdrop of the growing popularity of cryptocurrency, rumors are spreading that bitcoins will be banned in Russia. They have a certain foundation. The state cannot put up with a monetary system that is not controlled by the government and law enforcement agencies.

Back in 2014, the Prosecutor General's Office and the Central Bank made statements about the need to control and regulate the cryptocurrency market. However, so far the "law and bitcoins" has not been adopted.

At the same time, the actions and statements of the government and legislators are very contradictory. On the one hand, there was a bill to ban bitcoins in Russia.

On the other hand, the Deputy Minister of Finance spoke about the possible legislative consolidation of bitcoin as a means of payment. So far, only Russian courts have periodically blocked websites related to bitcoin, as well as cryptocurrency exchanges.

Sometimes resource owners managed to remove these prohibitions through higher courts, which in no way cancels the general trend: the state is struggling with an independent monetary instrument.

Is the circulation of bitcoins prohibited?

The owners of crypto coins, as well as those who are just about to start a wallet for settlements or making money online, do not need to worry yet.

The ban on bitcoins in Russia has not been introduced. It is possible to use bitcoins in Russia, their legality at this stage is rather uncertain.

A warning!

To legitimize cryptocurrency as a monetary unit, the Constitution will have to be changed. According to Article 75, the only monetary unit in Russia is the ruble.

Other monetary units are simply not provided. The Central Bank is obliged to do everything possible to strengthen the reliability and stability of the national currency.

From this point of view, the legalization of bitcoin in Russia is impossible, as it will create competition, which will necessarily affect the stability of the ruble.

However, it is impossible to say that bitcoins will be banned in the near future. The complexity of the fight against Bitcoin is also explained by the fact that the currency is circulated exclusively on the Internet and has no material signs. Anyone can open a wallet and mine cryptocurrencies or simply pay with cryptocurrencies for purchases on the Internet.

Tracking these actions is almost impossible. Information about all transactions contained in the blockchain, although open to everyone, does not contain the binding of wallets to specific owners.

Attention!

It is quite possible that cryptocurrencies are still legal in the Russian Federation precisely because of the lack of an effective way to stop their circulation in the network. Therefore, the situation is as follows: the legislation does not contain direct prohibitions on the issuance and circulation of virtual currencies.

However, they are not recognized as a means of payment either. Therefore, transactions using Bitcoin and other virtual coins cannot be considered legal and, in case of disputes, the interests of the parties cannot be defended in court.

In other words, the legal status of bitcoin is not defined. Against this background, the state does not abandon attempts to control or, if it fails to control, completely ban cryptocurrencies.

Moreover, at the moment they are really not always used for good legitimate purposes.

The history of the fight against bitcoins in Russia

Doubts about whether bitcoins are legal in the Russian Federation or not did not arise from scratch. This is facilitated by the ongoing history of the struggle of officials with virtual money. So, in order...

Advice!

The first mention of a ban on bitcoin was made by officials of the Central Bank and the Prosecutor General's Office this year. Then they were more of a recommendation. They advised against the use of cryptocurrencies and talked about upcoming bills in Russia prohibiting the circulation of cryptocurrencies.

The fact that bitcoin is a surrogate, which is not safe to use, was emphasized. However, until the law prohibiting bitcoin is created, users can work with it at their own peril and risk.

In the same year, the Ministry of Finance proposed to introduce into Russian legislation the rules governing the circulation of cryptocurrencies. The authors of the project insisted that digital currencies are not backed by anything and have an unstable exchange rate. However, these same words can describe the currency of any state.

Indeed, since the “gold standard” was abandoned, none of the monetary units has a real content. If we talk about the laundering of illegal income, then we should rather pay attention to offshore companies.

At the end of 2014, the Ministry of Economic Development blocked the bill of the Ministry of Finance of the Russian Federation, pointing out that it could not be adopted in the proposed form.

The attack on cryptocurrencies was launched from the other side. Nobody tried to ban them as a means of payment. Instead, the provincial courts began to decide on the blocking of sites specializing in mining and operations with bitcoins.

Despite the fact that the decision was overturned in a higher court, the incident received public outcry. And the Ministry of Finance decided to introduce a new bill, which turned out to be tougher than the previous one.

It provided for responsibility for the application of blockchain technology and other "money surrogates". However, bitcoins remained allowed and the Russians continued to use digital currency.

2016 began with new attempts by officials to ban bitcoins. The head of the Investigative Committee of the Russian Federation Bystrykin proposed to apply the most stringent measures to users using cryptocurrency, up to and including imprisonment.

A warning!

This was backed up by claims that the blockchain cannot be legalized afterwards, which is an excellent tool for fraud and speculation. That is, they traditionally tried to explain the ban on the use of monetary units by caring for the welfare of Russians.

It got to the point that Bystrykin announced that bitcoin is a pseudo-currency that anyone can issue in unlimited quantities. This demonstrated a lack of understanding of the essence of blockchain technology.

By the summer, the Ministry of Finance refused to support the law, since a ban on cryptocurrencies would make it impossible to use blockchain technology in the Russian Federation.

The latter was recognized as a necessary tool, which cannot be turned a blind eye at the present stage. By the end of the year, consideration of a draft law on the cryptocurrency market began. It exempted operators working on blockchain technology from liability.

WebMoney created a wallet for working with bitcoins and users were able to conditionally legally conduct operations with them. As a result, the ban on cryptocurrencies in the Russian Federation did not take place.

Attention!

The latest news about the legality of bitcoin in Russia this year differs little from past years. In March, the Ministry of Finance introduced amendments regarding the introduction of fines and imprisonment for up to 6 years for transactions with bitcoins, which should be equated with money laundering.

The law was not adopted. In October the fight continued. The President instructed the Central Bank and the Government to develop and implement mechanisms to regulate the movement of cryptocurrencies, mining and ICO. The order must be completed by July 1, 2018.

The following concepts should be officially defined: distributed ledger, which includes blockchain technology, digital asset, token, smart card and cryptocurrency.

At the same time, the law should be based on the principle of mandatory use of the ruble, which, according to the Constitution, remains the only legal tender in Russia.

Advice!

Officials should develop official organizational and regulatory requirements for mining, and a system for taxing received cryptocoins. A system of state regulation of "public attraction of funds in the form of tokens" (ICO) will also be developed.

It is indicated that it will be similar to the current scheme for regulating the initial placement of securities.

We can say that Russia today says “yes” to digital technologies. However, final conclusions can be drawn only after the law sees the light.

The fact is that the attention of the President and the Government to bitcoins suggests that the state has decided to take the technology under its control. At the same time, the state apparatus is making efforts to regulate the Internet. Time will tell how this will affect the security and demand for cryptocurrencies.

Bitcoins in other countries

There are three approaches to regulating the sphere of circulation of cryptocurrencies:

1. China. The Chinese government has completely banned the circulation of any non-traditional or questionable financial instruments. Responsibility for their storage in any form and form has been introduced. At the same time, Chinese tycoons are leading in the field of mining and are the holders of the largest cybercapitals.
2. European Union. In Europe, the circulation of any virtual money systems is completely allowed. The ban was introduced only on illegal financial transactions and criminal activities.
3. USA and Japan. In these countries, the authorities have taken a pragmatic approach to blockchain. Operations are subject to taxes, and the initial offering of tokens is regulated similarly to the placement of shares.

Bitcoins in Russia

If someone doubts that the circulation of cryptocurrency in the Russian Federation is legal, they can take a closer look at the activities of large well-known financial companies.

Russian electronic payment systems, including Webmoney, have bitcoin wallets. It turns out that you can buy cybermoney quite legally.

Cashing out bitcoins through webmoney also does not cause difficulties or questions from the fiscal service or law enforcement officers.

Through the trading terminals of forex brokers, you can also buy and sell popular cryptocurrencies. All restrictions that web wallets have are due to the peculiarities of the work of the Forex exchange and electronic financial systems, and not to the current legislation.

source: https://cryptostate.ru/zakon/zapret-btc-v-rf

Will Bitcoin be banned in Russia in 2019

Despite the fact that cryptocurrencies are a relatively new phenomenon, they have already caused a lot of controversy around them. And basically they are connected with Bitcoins as the first and far from the most perfect digital currency.

A warning!

Some countries even want to ban Bitcoins, including Russia. Today we will figure out whether Bitcoin is banned in Russia or not yet.

There are many reasons why Bitcoins want to be completely banned. Apparently, states are simply not yet ready to change the current state of affairs in the financial industry, or they simply understand too well that Bitcoin can pose a serious threat to an established economy.

After all, the main feature of this coin is that its existence is not secured by anything. She has no real value.

Therefore, cryptocurrency is considered a monetary surrogate. And according to this logic, a restriction or even a ban should be imposed on Bitcoins in the Russian Federation, as required by the most zealous fighters for the financial purity of the country.

The current value of Bitcoin in monetary terms is determined by the speculative actions of the owners of this coin. Therefore, there is a huge risk that the coin will fall in price.

Attention!

This violates the rights of citizens who own assets in Bitcoins, as they will lose the money invested. And no one can compensate for these losses, because the cryptocurrency is decentralized. Here you can not blame the bankrupt bank or other structure. That is, no one will even think of paying compensation, because there is no one to pay.

Therefore, financial transactions involving fiat (ordinary) money and cryptocurrencies will be considered as a crime. Consider why these transactions would be considered illegal, based on a couple of provisions:

• Bitcoins are not tied to any bank or other real financial structure;
• The inability to control transactions made using this cryptocurrency. This anonymity is like a bone in the throat of all financial authorities. They believe that this property of Bitcoin cultivates crime.

Therefore, looking for an answer to the question of whether Bitcoins are legal in Russia, the topic of their legalization remains open. The authorities, one after another, put forward laws that either ban cryptocurrency altogether, or treat it quite loyally. Therefore, this topic requires a more detailed analysis.

Is Bitcoin banned in Russia

It is impossible to say with complete certainty whether Bitcoins are banned in Russia. And all because of confusing terminology. It’s just that no one in Russia knows what Bitcoins are.

At least at the official level. The concept of "Bitcoin" or "cryptocurrency" does not appear in any documents. And if there is no definition, then what kind of prohibition can we talk about? How can you ban something that doesn't exist?

Advice!

Of course, attempts to determine the status occur regularly. But so far, none of them has ended successfully. So far, the prohibition specified in Article 75 of the Constitution of the country is in force on the territory of Russia, which states that any money surrogates are prohibited in Russia.

And cryptocoins were arbitrarily assigned to these surrogates, not taking into account that digital currencies may simply be a new round of development in the financial industry. And all because of their lack of real value.

But after all, a financial surrogate does not yet mean “cryptocoin”. Therefore, trading in crypto-currencies continues, being in a semi-legal state. The history of this problem is really long. Let's consider it in stages:

1. year 2014. Perhaps it was during this period that the crypto community was first worried about the legality of its actions. At that time, representatives of the Prosecutor General’s Office and the Central Bank of the Russian Federation argued that there was a big risk of declaring cryptocurrencies illegal.

   True, then it was not a law, but rather a recommendation not to use Bitcoins. But a little later, an initiative came from the Ministry of Finance to create a bill, the purpose of which was to regulate cryptocurrencies and expand the term “money surrogates” we have already mentioned, adding Bitcoin and other cryptocurrencies to it. But there were many contradictions in the document, and it did not pass;

2. 2015 A very scandalous year in relation to cryptocurrencies. Apparently, guided by the principle “what is not allowed is prohibited”, the Nevyansk court (Sverdlovsk region) decided to block a couple of sites working on Bitcoin mining in Russia.

   Naturally, it was outright hack work, and the blocking did not last long. But the case in question was recognized as unique, and this prompted the Ministry of Finance to make another attempt to determine the status of Bitcoin in the country. But this time, the measures to control cryptocurrencies were much tougher;

3. 2016 Just this year, the cryptocurrency acquired the status of a forbidden one. Why Bitcoins were banned in Russia, even the developers themselves could not explain. At the same time, the bill changed literally every couple of days. And the measures were more than harsh - imprisonment.

   And the motive is simply brilliant - because Bitcoin is an excellent tool for a variety of fraudulent and speculative operations. But the same can be said about other currencies.

   Maybe ban them too? In addition, for some reason they forgot that the issue of Bitcoin is only 21 million, because it cannot be such a serious speculative tool for crime.

   In general, the law was not adopted, since it turned out that blockchain does not work without cryptocurrency, and everyone is interested in its functioning. Including the authorities. As an alternative to the ban, it was decided to tie Bitcoin to the concept of foreign currency.

   But then foreign currencies would have to be banned, which did not suit anyone. In the end, it was decided that operators who understand the blockchain could be allowed to work with cryptocoins. Against this background, even the WebMoney company created its own equivalent of a Bitcoin wallet. But still, the status of Bitcoin continued to be conditionally legal;

4. 2017 Last year, the country began to treat crypto-coins more loyally. There was no longer any talk of a complete ban, at least no official statements on this topic have been received.

   It was only said that the uncontrolled use of crypto money can be risky for the users themselves. And by the end of the year, several draft laws on cryptocurrencies were published. Their creation was entrusted by Vladimir Putin. The document concerned the awarding of official status to Bitcoin and not only.

5. 2018 year. It seems that this year will be a turning point in deciding the fate of cryptocurrency in Russia. Will Bitcoin be banned or not?

The current state of affairs is that the coin is in a semi-legal status. Only time will tell whether this will continue or whether there will be shifts in one direction or another. As you can see, the determination of the status of digital coins has been going on for years. There was everything - from the most optimistic forecast to the risk of a complete ban on Bitcoins in the country.

What does the cryptocurrency law say?

Due to the fact that the legal status of Bitcoins has long been in complete uncertainty, even now it is not clear whether cryptocurrency is allowed in Russia.

In principle, there is no direct ban, but there is no permission to use cryptocurrency either. For example, Bitcoins should not be used in trading operations, but they are traded anyway.

A warning!

If a user has a cryptocurrency wallet, then from the legal point of view, all the currency that is listed on it has no value. But money has a price. And the massive use of digital currencies is forcing government agencies to take action.

There are several potential developments in the situation. Some talk about a complete ban on Bitcoin in Russia, others about legalization (complete or partial).

Now the State Duma has prepared two draft laws related to cryptocurrencies. They will regulate financial relations related to digital technologies. For example, investments and not only. These two bills were prepared on behalf of Vladimir Putin.

Of course, two laws are not enough. But in the future, it is planned to create at least 50 regulations that will control this industry.

Attention!

According to A. Aksakov, such measures are needed to regulate the cryptocurrency market and warn people who want to work there from the threats and risks that arise in any uncontrolled territory. All transactions related to Bitcoin in Russia, according to these laws, will take place under the control of the Central Bank and the Government.

Let’s take a closer look at these cryptocurrency regulation laws:

• Draft Law on Digital Financial Assets. This bill defines what “cryptocurrency” and “token” are. And the smart contract is fixed at the official level.

  It is indicated that a smart contract is a special protocol that can be used to conclude and maintain a trade agreement in blockchain technology. According to this law, tokens are property in electronic form, created using cryptography and computing tools.

  The difference between a cryptocurrency and a token is in the number of elements. But they are not legal tender in the Russian Federation. In addition, this project contains information about crypto transactions, digital wallets, etc.

  But one of the main nuances of the text is the definition of mining. According to the document, mining is “the activity of creating a cryptocurrency and (or) validating its creation in order to receive a reward in the form of a cryptocurrency.”

  Mining currency is considered a business activity. Transactions with cryptocurrencies should be carried out only through operators. And they can only be legal entities, stock exchanges or professional participants. In addition, the text of the paper contains an answer to the question of whether the circulation of cryptocoins is allowed. They can be exchanged for rubles and other currencies.

• The draft law "On alternative ways of attracting investments (crowdfunding)". Thanks to him, ICO will be legalized to make it easier to receive investments using crowdfunding.

The State Duma plans to consider these two bills in April. This will be the first reading. But the second and third readings will be held in May and June of this year. If everything goes as planned, the bills will be adopted by the summer of this year. That is, it will be possible to invest in the deadlines set by the president.

And cryptocurrencies themselves are property, but not means of payment. Only professional investors will be able to buy tokens in the ICO, but you can invest no more than 50 thousand rubles. So, there is no full-fledged ban on cryptocurrencies in the bill, they will simply be limited.

What is the responsibility for using Bitcoins

Recently, the Ministry of Finance has prepared amendments that will make the law on cryptocurrencies. According to the new legislation, violators of the law on cryptocurrencies will be punished.

And it will be quite serious. These amendments were presented to the public in March of this year. Based on them, organizations that continue to use Bitcoins in their activities will be considered dubious. They can even be accused of money laundering.

The punishment is the following:

1. As for individuals, they also cannot escape responsibility. Such people will have to pay a fine. Its size is up to 500 thousand rubles. If the fine cannot be paid, the guilty party will have to be punished in another way - to be deprived of liberty for 4 years;
2. If an organized group is caught laundering income through cryptocurrencies, the size of the punishment will increase. Responsible persons will have to pay a fine in the amount of 500 thousand to 1 million rubles;
3. Financial companies will be forced to pay even more if they are caught. For them, the fine is 1 million rubles;
4. Well, professional participants in the securities market will pay the most for dark things related to digital money. Their fine ranges from 1 to 2.5 million rubles.

In addition, they will limit not only the distribution and use of crypto coins, but also the creation of new tokens. This would be a serious offence. Market participants or ordinary people who have resorted to the use of digital coins will lose their freedom.

The maximum term for which a securities market participant can be imprisoned is 7 years. Also, members of an organized group who were caught and did not prove their innocence can spend 6 years in prison.

These amendments to the law will soon be submitted for consideration. If it is accepted, members of the cryptocurrency community will not be envied.

They will lose their freedom of action. The law has too harsh conditions, which in all civilized countries would mean exactly the same thing as a nail hammered into the coffin of cryptocurrencies.

source: https://cryptomagic.ru/regulirovanie/zapret-bitkoina-v-rossii.html

The ban on the use of bitcoins in Russia in 2019

According to the current legislation of the Russian Federation (Article 75 of the Constitution of Russia), any money surrogates in Russia are prohibited.

These surrogates include a relatively recent cryptocurrency - bitcoin. The main feature of such a cryptocurrency is that it is not backed by real value.

A warning!

How much bitcoins are worth in terms of money is determined by speculative actions. Due to the lack of security with real value, there is a great risk of losing the value of this currency and, as a result, violating the rights of citizens who use it.

According to a representative of the Russian Prosecutor General's Office, the use of bitcoins and their exchange for real money (both for rubles and for any other currency) by legal entities will be considered in accordance with the current legislation on combating the legalization of proceeds from crime.

Why the law prohibits the use of bitcoins

This cryptocurrency cannot be approved by the state for several reasons:

• Bitcoins are not tied to any particular bank.
• This monetary unit has no real value backing.

Despite the ability to control the transfers of this cryptocurrency, it is almost impossible to find out who and to whom makes the transfer.

Such anonymity made bitcoins in Russia a currency that criminals began to cultivate. This monetary unit began to be used to buy goods that are prohibited by law, such as drugs, weapons.

Attention!

It is worth noting that, according to the current legislation, it is forbidden to use cryptocurrency to purchase goods, pay for services, or exchange it for real monetary units.

This prohibition applies to both individuals and legal entities. The Ministry of Finance has already prepared amendments that will be introduced to the Code of Administrative Offenses in the near future. The essence of these amendments is to tighten sanctions for the issuance and use of any virtual currency.

Use of blockchain technology

Unlike money surrogates, the blokchain technology (blockchain) underlying bitcoin is not prohibited in Russia. This is explained by the fact that this technology can be applied not only in the field of finance, but also used for:

1. digital signature system solutions;
2. remote user identification;
3. maintaining a register of real estate objects;
4. maintenance of the land registry.

The list of possible applications of this technology does not end there. It is still being explored not only in Russia, but also in other countries.

In the Central Bank of Russia, a special working group was created in 2015 to study blockchain and the possibilities of its application. However, if the issue with the use of this technology is not resolved by the end of this year, its further study will be inappropriate.

Advice!

Employees of the Central Bank warn citizens and legal entities against exchanging cryptocurrencies for real goods or services, as well as for cash.

Since virtual money is more competitive than legal currencies, it spreads quite quickly.

According to experts, the turnover of such surrogates in Russia today amounts to one percent of GDP. If this figure increases to at least 10 percent, the use of cryptocurrency will become a real threat to the financial stability of the state.

fines

The amendments, prepared by the Ministry of Finance in March 2018, provide for penalties in the form of fines that every organization using bitcoins will have to pay.

Operations with this virtual currency will be regarded as doubtful and considered money laundering. For individuals, a fine of up to 500 thousand rubles or imprisonment for up to 4 years is provided.

If bitcoins are used by an organized group, the fine will be from 500 thousand rubles to 1 million rubles. For companies operating in the field of finance, the fine will be up to 1 million rubles. Professional participants in the securities market will have to pay from 1 to 2.5 million rubles.

According to the new amendments that will be made to the Code of Administrative Offenses, the creation and use of virtual currency in Russia is also punishable by imprisonment.

The maximum term for members of an organized group is 6 years, and for those who are a participant in the securities market and use cryptocurrency, a penalty of imprisonment for up to 7 years is provided. This bill will be submitted to the State Duma in the coming months.

The prohibition of Bitcoin (BTC) in the Russian Federation is a topic that is increasingly being discussed in circles of interested parties. The state does not like the anonymity and independence of virtual currencies. As for people, the number of crypto enthusiasts is constantly growing. How the confrontation will end, time will tell.

Is there a ban in Russia

There is no direct ban on Bitcoins in Russia yet. Those who wish are allowed to freely buy, sell, store and exchange BTC. However, the legal status of the means of payment is not settled. To make Bitcoin a full-fledged payment instrument in Russia, a lot of changes will have to be made to various parts of the Constitution. The process will take a long time: most likely, it will stretch for 3-4 years. So far, the question of whether Bitcoin is banned can be safely answered - no.

Article of the Constitution No. 75 states that the Russian ruble is considered the only means of circulation in the country.

Even though while bitcoins are allowed, in Russia the entire banking system is obliged to take measures to strengthen the native fiat currency. In the event of the legalization of the crypto coin, the stability of the ruble will be shaken, and the authorities are not ready to take risks.

Legality of Bitcoins

Bitcoin is not tangibly expressed and is used only on the Internet. available to everyone with enough funds to organize the process of mining tokens. Any user can, if desired, purchase goods or services for Bitcoins.

It is impossible to track the actions performed with the help of cryptocurrency. The address of the wallet from which the transaction was made is visible, but there is no information about who owns this address. This interferes with the legality of Bitcoin in Russia, because the authorities need to control the circulation of funds on the Web and promptly neutralize the senders of unreliable transactions (for example, those who buy weapons or drugs).

Is Bitcoin banned on the territory of the Russian Federation - no, but not allowed either. The currency is in limbo. Transactions conducted with the participation of BTC are not considered legal and are not subject to government regulation. If the user was deceived for money, but the citizen paid with cryptocurrency, it is useless to contact the police or the prosecutor's office.

History of wrestling in Russia

For four years now, Bitcoins in Russia have been fighting against the protests of officials. The population, especially those in their 20s and 30s, believes that cryptocurrencies should not be banned. It will not be superfluous to remember how everything was from the very beginning.

year 2014

In 2014, the Prosecutor General's Office and the Central Bank first mentioned the phenomenon of cryptocurrencies. They did not give any statements or prohibitions, they simply recommended to be careful in handling electronic money and understand that all actions are performed at your own peril and risk.

A little later in 2014, the government of the Russian Federation (represented by the Ministry of Finance) made a proposal on the legal regulation of digital money and transactions with them.

The Ministry of Finance was especially embarrassed by the unstable exchange rate and the lack of material reinforcement.

Although for more than three decades, not a single world currency has also been backed by the gold standard. As for the possibilities for money laundering, offshore companies have no less of them.

2015

When the previous proposal was rejected, the Treasury decided to attack from the other end. This was not a ban on Bitcoin as a means of payment, but the blocking of related resources began: Internet wallets, mining pools, payment systems. Although the higher authorities rejected this proposal as well, the situation resonated with the public.

Later, information appeared that the Ministry of Finance was introducing a new bill with strict conditions: criminal liability for the use of a “surrogate for money” and in general. However, this move did not lead to a ban on Bitcoin in the Russian Federation.

2016

Already at the beginning of the year, the state again took up attempts to ban Bitcoin. The Investigative Committee of the country even made a proposal to detain all people who use cryptocurrencies. Of course, such extreme measures did not find support, but most officials agreed that digital money was being used to conduct illegal transactions.

Bystrykin, head of the Investigative Committee, made it clear with his statements that he did not understand anything about blockchain technologies. In particular, there were words about what is a kind of currency that anyone can release into circulation indefinitely.

In the summer of 2016, the Ministry of Finance refused to support the bill on the territory of the Russian Federation. A complete ban on crypto would lead to a ban on Blockchain, which is an important technology for today's world, which is already being used in many areas of commerce and production. By the end of the year, another bill was actively considered - on the removal of responsibility from operators of blockchain platforms. A step towards the legalization of Bitcoin was the creation of a special wallet by the WebMoney service.

2017

In 2017 and 2018, rumors continue to circulate that Bitcoin was banned in Russia, but in reality the situation is still as uncertain. In March 2017, a law was proposed (and rejected) for a prison term of up to six years for transactions with BTC, equating them with money laundering.

In October 2017, Vladimir Putin gave the order to complete the legal regulation of cryptocurrencies by July 1, 2018. This includes the development of terminology for mining, ICO, cryptocurrencies, and a strong link with the main Russian currency - the ruble. Apparently, the Bitcoin ban is being delayed. On the contrary, the government is beginning to treat digital money favorably.

Bitcoins in other countries

Many developed countries have already adopted this cryptocurrency to the financial markets. There are three different approaches to solving the problem:

1. Japan and USA see cryptocurrency as an additional source of taxes. Without introducing bans on its use, these states simply imposed fees on it, corresponding to those that apply to working with shares.
2. European countries they almost completely turn a blind eye to cryptocurrencies, only making sure that illegal operations are not carried out.
3. China opposes the legality of BTC and advocates the use of exclusively traditional financial instruments. Responsibility for violation of the ban on storage and operations with BTC has been introduced.

It is noteworthy that China leads in the field of ICO projects, and Chinese corporations produce 90% of mining equipment. Here are some conflicting statistics.

Forecasts for the future

There is no doubt that with the expansion of the use of blockchain technology, the attitude towards cryptocurrencies will improve. Today, blockchain is already being used to create electronic signatures, real estate accounting, land cadastral operations, and user identification on the Internet. In this regard, analysts are inclined to believe that a complete ban on Bitcoin on the territory of the Russian Federation will not be introduced only if something out of the ordinary happens.