Russia Reconsiders Ban on Bitcoin 2015!

Snowy Days in Russia

 

Times are tough in Russia. The Ruble has lost about 50% of its value versus the dollar. The West is levying economic sanctions against them for their military actions in the Ukraine. And the Russian Ministry of Finance earlier this year drafted a bill to ban Bitcoin and other “quasi-money” in 2015. Also read: Indicators Show Russians Trading Rubles for BTC

Russia reconsidering Bitcoin?

Could Bitcoin make it back into Russia? The latest news is that the draft law is in need of major revision as the Russian Ministry of Economic Development has not approved the draft in its current form. This is certainly not because of the desire to enhance freedom and liberty for Russian citizens, but because it may hurt Russian corporations ability to attract new business. The “quasi-money” designation includes things like gift cards and certificates that businesses use to bring in new customers. Banks, major retailers, and telecom companies would take a huge hit, and with the national GDP/economy is already having a terrible year, this bill does more harm than good overall.

“The proposed draft regulation act doesn’t solve any tasks assigned, but only serves to create legal barriers to the implementation of marketing programs of businesses and business development in general,” according to the Ministry of Economic Development.

The issue with nation-states attacking Bitcoin out of defense of their currency is a complicated one. Many nations are in debt due to their debt-based fiat currency/central banking system. The current inherently flawed system is designed to leave nations indebted. Bitcoin and it’s potential growth leave open a way to build new businesses, generate new revenue streams by attracting investors, and ways for future taxation to help alleviate the nation’s indebtedness. Russia’s previous hard stance against Bitcoin was taken before many of their current economic issues and sanctions manifested.

Russia’s economic situation may continue to spiral downward, as they may soon suffer from restriction of access to the global financial system. In particular to the payment system SWIFT (Society for Worldwide Interbank Financial Telecommunication, which supplies secure messaging services and interface software to wholesale financial entities. An international banking computer partnership). Some critics say the government should pay more attention to financial innovations instead of trying to ban them.

Does this mean Bitcoin is in the clear? Not exactly. The bill most likely will be revised, but it may just benefit Russian corporations, but still restrict Russians ability to use electronic currency. The ban may just work around gift cards and bonus cards and remain for digital currency. The nature of the extent of the revisions remains unclear.






Russia and bitcoin have not exactly been on good terms.  The country showed a particularly strict attitude towards the digital currency and was looking to enforce a ban that would threaten any users with heavy fines and other forms of punishment should they engage in the “pleasures of bitcoin.”  It appears that while on the playground, Russia had primary control over the sandbox.
However, now that sandbox is possibly up for grabs.  Following the Ruble’s massive drop in value, the country seems to be reconsidering its approach to bitcoin and digital currencies, and the ban it was once aiming to integrate in 2015 may become a thing of the past.
Russia’s Ministry of Economic Development is frowning upon the current draft law outlining the potential ban and its related prohibitions.  The agency believes that the law as is could damage major retailers, banks and telecom operators alike, and that several risks may arise over time:
“The proposed draft regulation act doesn’t solve any tasks assigned, but only serves to create legal barriers to the implementation of marketing programs of businesses and business development in general.”

Other issues being speculated include the role of gift cards and certificates, which are listed as “quasi-money” and aren’t fully outlined in the current draft.  According to RBK News Agency, the lacking specifications “could throw [Russia’s] payment service market a few years into the past, leading to a fall in the number of non-cash payments for goods and services.”
The law is now facing several revisions.