RUSSIA DECLARES BITCOIN A MONEY SUBSTITUTE –“CB noted that according to Article

RUSSIA DECLARES BITCOIN A MONEY SUBSTITUTE

–“CB noted that according to Article 27 of the Federal Law “On the Central Bank of the Russian Federation” issuing “money substitutes” on the territory of the Russian Federation is prohibited.

The regulator also noted that Bitcoin transactions are classified in the category of questionable transactions.

The Bank of Russia noted that there is no provision for virtual currency and legally obligated economic agents: “Operations on them [virtual currency] are speculative in nature, carried out on the so-called” virtual exchanges “and carry a high risk of loss of value,” – said the Central Bank.

In addition, as noted by the regulator, the company may inadvertently be parties to the transaction on money laundering, in connection with the fact that the release of virtual currencies engaged in anonymous actors.

In this regard, the Bank of Russia intends to consider the provision of services to Russian companies Bitcoin exchange for rubles and foreign currency as a potential involvement in the implementation of suspicious transactions.

CBA first outlined the position in relation to the Bitcoins. Earlier, similar statements were made by other regulators. National Bank of China, for example, forbade banks to use their virtual currency than provoked the collapse of Bitcoin rate to 50 percent. Cautions on the use of Crypto-currency were also isused by CB France, India and Estonia. Nevertheless, none of them did not declare questionable transactions with Bitcoin.

January 24 Sberbank head German Gref defended the virtual currency. Leader of the largest in Russia Financial Organization said in an interview with Bloomberg, he had sent letters to the Presidential Administration, the Central Bank and Ministry of Finance to prevent the spread of e-money restrictions.’–