After hearing the stark statements against bitcoin and other cryptocurrencies by Vladmir Putin, one might think that Russia will never accept bitcoin. It is believed that the country will impose regulations against cryptocurrencies and exchanges. However, a positive development has been made in Russia with regards to cryptocurrency. The deputy finance minister, Aleksey Moiseev, has hinted that cryptocurrencies will soon be legalized in the country. Moiseev further clarified that action will only be taken against those, who build pyramid schemes involving cryptocurrencies for the purpose of tax evasion.
He explained that people found to be involved in such schemes will face criminal prosecution. If someone is caught mining cryptocurrencies without the right permissions, then they may only face administrative penalties. Moiseev was quoted saying:
“The penalties will be different, mostly administrative, but if someone created the cryptocurrency for the purpose of settlements, then there will be a criminal punishment.”
To protect the interests of the government and investors, the miners will be made to register with a central authority. The responsibility of this central authority would be to overlook the cryptocurrency market and protect the interests of the Kremlin, as well as those of investors.
While considering the comments recently made by Putin, one can consider this a positive step towards the acceptance of bitcoin, and other alt-coins, in Russia. However, the government will still have major control over the cryptocurrency market. Although Moiseev stressed that the government will allow people to buy and sell bitcoin, the government is still expected to heavily scrutinize buyers and sellers.
The regulations are yet to be released and may take at least a few months before coming into play. The market’s behavior towards bitcoin is changing from suspicion to acceptance.