Bitcoin to be Legalized in Russia

The possibility of cryptocurrency mining becoming criminalized isn’t that far-fetched in Russia as the country works on legislation of the trade of Bitcoin and other virtual currencies. Deputy Finance Minister Aleksey Moiseev says, “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.”

Moiseev also said there will be criminal penalties for those who use pyramid schemes or cryptocurrencies to avoid paying tax.

The Ministry of Finance had suggested the registration of miners with a central authority which will allow both companies and entrepreneurs to set up mining operations.

Bitcoin made legal in Russia

As the state is currently drafting the legislation, the deputy finance minister explained that trading Bitcoin and other virtual currencies would soon be realized. It would take at least a few months for the new legislation to take effect in the country.

This decision to legalize cryptocurrencies has been quite a turn as Russian President Vladimir Putin had previously condemned cryptocurrencies in October.

However, he also ordered the government to set up regulations for ICOs, mining, and the trade of Bitcoin and other cryptocurrencies by July 2018.

Russia is also currently developing its own cryptocurrency: the CryptoRuble. The Russian cryptocurrency cannot be mined and will be controlled by the state and exchanged for regular Rubles.

They also plan to explore the possibility of using Blockchain technology for voting in the country.