Russian Crypto Law to Ban Bitcoin and Altcoins?

Facebooktwitterredditpinterestlinkedinmailby feather

Earlier this year, Russia introduced a slew of new laws that define cryptocurrencies and digital financial assets. However, experts aren’t sure what those draft mean. On the surface, it looks like Russia is finally ready to allow the trading of digital shares and bonds, but it doesn’t mention cryptocurrencies such as Bitcoin specifically. The law also fails to address transactions with overseas digital financial assets, leaving all crypto traders in the country scratching their heads as to what it could mean.

The confusion surrounding the new law doesn’t bring good news for crypto owners. According to local experts, it might lead to a widespread crypto ban that would sideline Bitcoin and altcoins on domestic exchanges for good.

No One’s Sure What the Draft Means

The bill was first introduced at the beginning of the year and originally established the concept of digital rights in Russian law. As such, it determines how a person can exercise and transfer these digital rights which are now seen as assets in Russian law. Although Russia has never officially recognized cryptocurrencies, it’s a step in the right direction. Or at least everyone thought so.

Things got confusing pretty fast after a few changes in the terms and conditions. Traders are allowed to share and trade “digital financial assets”, but the law doesn’t specifically state anything in regards to Bitcoin and altcoins. Experts aren’t sure if this was meant on purpose or the law is open to cryptocurrencies. The bill has taken a rather confusing shape and it doesn’t spell any good news for crypto traders.

After the law “On Digital Assets” was introduced, pro-blockchain forces were “neutralized” by the Russian Central Bank which is hell-bent on a China-style crackdown on Bitcoin and altcoins. Cryptocurrency exchanges, for example, need serious financial backing if they want to do business on Russian soil. This will deter most crypto traders and currencies from setting up shop in Russia which is a pretty big market, to be honest.

Although latest developments on the controversial law are seen as positive by many, Russian crypto traders are getting tired of the political games behind the law and are seeking a swift response. One thing’s for sure – with the draft requesting crypto exchanges to have net assets of at least $788,000, the crypto market in Moscow won’t blossom anytime soon.

What Does it Mean for Bitcoin Casinos?

It depends on how you look at it. With the draft bill predicted to pass in the Duma before the end of the year, it remains to be seen if Bitcoin and altcoins will be outlawed. If they are like some local experts think, Bitcoin gambling in Russia is dead for the foreseeable future. If not, the online crypto gambling industry might have found itself a new market.

According to Russian law, for something to be legal, it must be written in the country’s civil code. Since Russia doesn’t rely on precedents, anything not found in the civil code is considered illegal. If the Duma doesn’t state Bitcoin and altcoins in the upcoming law, crypto traders in Moscow will have a hard time moving their assets or play games online.

 

Facebooktwitterlinkedinrssyoutubeby feather
November 27, 2019: • No Comments

Comments are closed.