Russian government: Bitcoin does not pose a threat, Bitcoin ban is on hold indefinitely

Russia’s deputy finance minister said the country’s central bank and the Federal Financial Supervisory Authority do not believe the use of cryptocurrencies such as Bitcoin poses any threat.

More noteworthy is that Olga Skorobogatov, deputy chairman of the Russian Central Bank, revealed that the Bitcoin ban that the central bank once insisted on implementing will no longer be on the agenda.

According to local Russian news agency TASS, Deputy Finance Minister Alexei Moiseev, who has been trying to ban Bitcoin since 2014, has changed his mind and is taking a wait-and-see approach to the cryptocurrency. He said in September 2014:

We will discuss this bill (Bitcoin ban) in the upcoming parliamentary session, and it is likely to be passed immediately, or at least take effect next spring. We are currently waiting for the response from the law enforcement agencies, who will decide on the specific legal measures, and their opinions are also within our consideration. However, there is no doubt that this bill will take effect.

Although Russia’s Investigative Committee Chairman Alexander Bastrykin said last year that Bitcoin “poses a significant threat to the country’s financial stability,” Moiseev now told reporters that Bitcoin is not a threat, following discussions with experts over the past two years and opposition from other Russian government agencies to the Finance Ministry’s Bitcoin ban.

He said:

At this stage, we will wait and see how Bitcoin develops. We believe that central banks and financial authorities should monitor cryptocurrencies for economic security reasons. At present, the above institutions do not believe that Bitcoin poses a major threat. In other words, Bitcoin may pose a threat in the future, but it does not exist yet.

The Russian government official once insisted on issuing a Bitcoin ban, but now his attitude has changed 180 degrees. The ban stipulates that anyone who uses Bitcoin in Russia may face up to 7 years in prison.

No more ban on Bitcoin

In addition to the Ministry of Finance, Olga Skorobogatova, deputy chairman of the Central Bank of Russia, also publicly stated that the central bank will not take any measures to ban the use of Bitcoin.

As a private currency, Bitcoin regulation is not simple. Regulators and governments agree that they will not ban Bitcoin. Instead, we should understand it and establish a basic regulatory framework.

Prior to this, Moiseev had said that the Bitcoin ban would be shelved. Although Bitcoin is likely to be regulated in Russia, mining and use of the cryptocurrency will no longer be illegal activities.