Bitcoin Ban in Revision by Russian Government

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Could Bitcoin make it back into Russia?

The Russian Ministry of Economic Development recently denied a draft law that banned Bitcoin, and requested a major revision of its contents. The ease of use and transaction speed of Bitcoin would make it a driver for big corporations around the country.

They conveyed that the bill did more harm than good.

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.

 

Multiple companies including major mobile carriers Megafon and MTS expressed concerns with the bill, and are in support of its revision.

The reason for widespread support on the Ministry’s descision is that the bill doesn’t only mention Bitcoin. The bill included a ban on marketing tools such as bonuses for regular credit card users.

Russia’s economic state will continue to creep downwards as sanctions have manifested, and oil prices have fallen. Moreover, Russia’s debt based fiat currency has been holding them back.

With the 2018 FIFA World Cup taking place in Russia, critics predict that costs of the tournament will spiral out of control. More controversial moves by Russia could lead to key sponsors dropping their support. This would leave Russia with a 2018 World Cup and little to no money to host it.

Bitcoin could be one solution for many of Russia’s problems. However, this doesn’t mean Bitcoin is in the clear for the Russians. The nature and extent of the revisions is unclear. It is entirely possible that Bitcoin will become accepted in Russia, but it is much more likely that Bitcoin’s use will be allowed only for big businesses to improve commerce.

What’s to come for Russia is unknown, but by subscribing to the CoinBuzz newsletter you can keep up to date with all of the latest Bitcoin news!

Coinbuzz

CoinBuzz provides news and analysis on Bitcoin and other digital currencies. Founded in 2014, the site has quickly become a leading source of information on digital currency technologies, businesses, markets, and regulation.

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