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

Greyson

New member
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?
 

Jair

Member
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.
 

Maxwell

Member
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?
I have been seeing this news since last 3 days in my Google news feed from various sources. It seems like Russian lawmakers are thoroughly confused on their actions on cryptocurrency in general. First they thought of banning it and now when they are realizing that it's beyond their control, they are trying to regularize it! But yes, I generally don't believe any news coming from a communist country where media doesn't have right to speak freely!

Regularizing cryptocurrency but not recognizing it as a payment method, makes little sense to me! Probably they want to map the group that is using cryptocurrency first and then wrack havoc on them to ban the cryptocurrency from the country. Communist countries can take such extreme measures to be honest and can go to any extent without looking at human rights. Extreme caution is advised!
 

Ahmir

Member
That just means that you won't be able to use bitcoin to pay directly on stores. While that's not good, I don't think it's like super bad either. As for now we're mostly stuck with selling bitcoin for fiat or using bitcoin debit cards(which should be allowed because you're not directly paying with bitcoin/crypto) in most countries anyway, so for now this isn't that much of a big deal.
 

Ivan

Member
So if I understood it correctly, they are actually trying to prevent peer-to-peer transactions but allowing the possibility of profiting from trading and other crowd-funding types or something? I think what they are doing is making stores not accept Bitcoin to prevent complications with taxing and other financial related with their lawmakers or something. Maybe in the future, they would be able to make it legal to accept it in normal ways or in anything.

I'm just curious if they have a custodial wallet that covers every place there? Or is the "most" being used?
 

Ashton

Member
Can't say it's surprising. They know they can't BAN the p2p trading as much as they'd like to, so smart move to legalize it so they can tax it anyway. They know that most people will be using it to trade anyway, and don't want the headache of having to regulate and mediate businesses that use crypto or as securities so happy to just regulated trading.
 

Calvin

Member
Can't say it's surprising. They know they can't BAN the p2p trading as much as they'd like to, so smart move to legalize it so they can tax it anyway. They know that most people will be using it to trade anyway, and don't want the headache of having to regulate and mediate businesses that use crypto or as securities so happy to just regulated trading.
I think there's no problem with that. If they don't want to use crypto as payment method, the crypto user can just convert his crypto to fiat. And then, just use that fiat for payment, right? So at least they are not banning the usage of bitcoin or crypto. Because that would be their disadvantage if they will totally ban it. Their citizens need this especially during this crisis.
 

Kaiden

Member
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.
 

Kingston

Member
Russia really hated Bitcoin, but somehow found out a value on to it. The reason why they put cryptocurrency in a gray zone for quite a long time.
During the 2nd reading of this bill, It was stated there that
the previous version of sanctions on the DFA bill has been shelved according to this article from this topic.

IMO, this major crypto bill in Russia doesn't remove Bitcoin in the gray zone, because they still prohibits p2p transactions. While at the same time it's a good thing that Russian can now trade legally.
Nevertheless, their decisions are constantly changing.
 

Diego

Member
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?
A great decision I will say. ICO and crowdfunding are just scams and nothing else. If you have real caliber of starting a crypto related business then go for a usual public offer on stock exchange. These ico makers will never go for it because there is increased accountability on their money in that case which they are just not willing to provide. Most of the ICOs I have seen lately have altogether converted their business models into something which they never said in the white paper so all on all these ICOs make no sense at all. Unless you want tons of get rich quick schemes. Moreover expressly no country would say that you could use bitcoin as payment method. Because this will pose some serious issues to their legal tenders. It's good that they have legalized trading as atleast traders could get advantage of Bitcoin's price moves.
 

Cole

Member
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?
I've read about it on a Russian website after seeing this thread, and it seems that not only cryptos are not allowed to be used as payment, but there's also a ban on advertising of such payment option. And it seems that the bill recognizes cryptos as property (which is coincidentally similar to the recent crypto policies of China). Moreover, all crypto owners have to officially declare their cryptos (and pay taxes, I think). So I'd say it's not great news for crypto users in Russia, and even more so for people there who treat Bitcoin as money.
 

Stone

Member
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.
So far Indonesia has not given permission to bitcoin user to use it as a legal payment tool, but the government has given permission for bitcoin user to trade where bitcoin can now be traded legally on commodity exchange and every exchange operating in Indonesia must comply with government regulation . KYC become mandatory and I am very confident that the government in this way will benefit through taxes that must be paid by the bourse.

I think the same condition apply to Russia even though I am not sure what the real reason they are thinking. It is only speculated that they fear that if bitcoin is allowed as a means of payment, it will disrupt their countrys financial and economic system.
 
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