Russia Backpedals On Bitcoin - Unveils Plan To Ban Cryptocurrency Sales To "Ordinary People"

Tyler Durden's picture

After local Russian media reported earlier this year that the Russian Parliament could legalize bitcoin as soon as 2018, Deputy Finance Minister Alexei Moiseev this week signaled that authorities might instead seek to restrict its use. During an interview with Russia 24, a state-owned news channel, Moiseev said that Russian authorities should treat cryptocurrencies, including bitcoin, as sophisticated financial assets and restrict their use and trading to qualified investors only.

Moiseev’s statement surprised members of Russia's digital currency community, who had been lead to believe that the Russian government was finally warming to digital currencies after years of skepticism. That belief was strengthened earlier this month when an aide to Vladimir Putin announced that he would seek to raise $100 million to build bitcoin mining infrastructure in Russia, with the goal of controlling as much as 30% of the bitcoin network’s hashpower.

“’Cryptocurrency should be regulated as a financial asset,’ Vedomosti reported him saying. ‘There is a point of view that cryptocurrencies such as bitcoin is a financial pyramid. Investments [in] such are high-risk. This determines our approach to their regulation.’

 

RBC quoted him saying: "We propose to call it a currency, but regulate it as other property, qualify it as a financial asset and allow only qualified investors to buy and sell them on the exchange.

As a regulated financial security, Moiseev said cryptocurrencies would be sold through stock exchanges under the supervision of the Federal Financial Monitoring Service of the Russian Federation, also known as Rosfinmonitoring, according to Bitcoin Magazine.

Moiseev added that bitcoin is a "dangerous" investment, and that it's the government's duty to protect "ordinary people" from losing their shirts, according to CoinTelegraph.

“For ordinary people, there’s no way because these are very dangerous investments that could lead to loss of money.”

According to Moiseev, Russia’s ministry of finance is discussing how to proceed with the central bank and the Moscow stock exchange. Moiseev added that it is necessary for cryptocurrencies to sell through the exchange “to provide judicial protection to participants in transactions.”

Moiseev detailed that this approach to cryptocurrency regulation aims to protect the rights of buyers and sellers. “Now people do it at their own peril and risk, they have no judicial protection. This is our first task,” he was quoted by Vedomosti.

His comments then turned to the subject of money laundering.

“Citing Western Europe and Russia in particular, Ria Novosti quoted him saying “the use of cryptocurrency for illegal operations has become much more frequent because the mechanisms for combating money-laundering are not yet fully applied in all countries to cryptocurrencies.”

Finally, Moiseev said that the Russian government is uncomfortable with the anonymity provided by bitcoin.

“Moiseev also explained that it is necessary to sell bitcoins through the regulated stock exchange, so that the regulator will always know ‘who the seller is, who the buyer is, where these bitcoin accounts have moved.’”

What's worse for bitcoiners is that Russia might be at the vanguard of a shift in how authorities view bitcoin. The SEC late last month declared that digital currencies, including bitcoin and the tokens issued during ICOs, should be treated as securities under the law.

So far, the SEC's guidance has been vague. But the ease with which digital currencies could be used to finance illicit activities – regardless of whether they’re actually being used for that purpose – likely means that more government crackdowns are ahead. By requiring all local bitcoin exchanges to screen transactions for potential violations, China has found a way to pierce the anonymity surrounding digital-currency transactions.

Don’t think it can't happen in the US.

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LindseyNarratesWordress's picture

I TOLD/WARNED YOU, ALL!!!  (((BitCoin))) is a classic pump-and-dump scam, at-this-point, and ANYONE putting more money into that SCAM, is a God damned fool, ignorant-to-history.

 

Lindsey

bamawatson's picture

satoshi is actually murray schwartz

HowdyDoody's picture

Lede - "Russia Backpedals On Bitcoin - Unveils Plan To Ban Cryptocurrency Sales To "Ordinary People""

Text - "We propose to call it a currency, but regulate it as other property... ‘There is a point of view that cryptocurrencies such as bitcoin is a financial pyramid. Investments [in] such are high-risk. This determines our approach to their regulation.’ "

So they regard it as a potential ponzi (a bit like fiat?) and may regulate it accordingly. Hardly banning. Way to go, Tylers. You really are MSM wannabes.

 

 

Mr 9x19's picture

it's called clicbait, darling.

tmosley's picture

Peanutz dance in the streets as my crypto portfolio hits yet another all time high.

Children.

DWD-MOVIE's picture

I’m making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do… http://disq.us/url?url=http%3A%2F%2Fwww.jobproplan.com%3A68UoF1LgzM-Yo3S...

BobEore's picture

"Finally, Moiseev said that the Russian government is uncomfortable with the anonymity provided by bitcoin."

 

Stop the presses~ Moishe n company are in charge here...

and there...

n everywhere. SuperTalmudists - from shore to distant shore. Should be good for makin sure us lil folk stay 'protected.'

Eager Beaver's picture

Sad thing as always here, is that people are ignorant of how Bitcoin works. Saying that Bitcoin can only be traded on a stock exchange is about as ridiculous as it comes. How do they propose to prevent people from buying it outside of the stock exchanges? You can make any regulation you like as a government, that doesn't mean you can enforce it. China, Singapore, the Seychelles, all have exchanges that don't have to abide by Russian, or American, or any other laws, except those of the jurisdiction within which they operate. How are they going to prevent people from using personal wallets and purchasing directly from each other? Good luck with this, sounds like fear mongering to me.

zebra77a's picture

You sir are quite correct.

I often wonder if these governments do not think before they speak - oh we will just regulate the exchange and monitor it's entry points done! 

The big open mouth OOOOOHHHH when they realize how fast and quick a new offshore unregulated untrackable uncooperating exchange pops up that will tumble the bitcoin to a third party currency and back, as bitcoin market forces flow away from their country..

It's like trying to put Opensource Software back in the proprietary bottle good luck with that one..

 

The Cooler King's picture

That's great because I was really looking forward to paddling my kayak out to the Seychelles to open up my bitcoin account so I can paddle back with that $6k Chinese furniture set strapped on the back.

CJgipper's picture

You don't have to go there retard.  That's the point 

 

I can buy bitcoin from an exchange not subject to US gov controls right here from my kitchen table.  They can do the same.  They can buy from a reputable US exchange for that matter lol

CJgipper's picture

Exactly.  The whole point is that it is not centrally controlled or traded.

 

I predict the opposite effect.  This is good for a 20% bump in bitcoin, eth, litecoin, and other top tier currencies in the next week or so as this soaks in.

PrezTrump's picture

Lindsey, without providing a logical base and understanding the pros and cons your warnings are a joke. 

it's about making money.  Just get out before the music stops.  Same as always.

LindseyNarratesWordress's picture

I rub-my-hands-in-glee, EVERY TIME that I am, inevitably, proven to be correct.

 

EVERY SINGLE TIME.  Seriously.

 

This next time, when it, INEVITABLY, happens, will be just another one of those times...

 

*smiles knowingly and seriously*

 

Lindsey

 

PrezTrump's picture

I know you do Lindsey.  Reading your posts the last few weeks I am conviced you are mentally unstable.

You celebrate like you are a genius.  Really it just shows you missed out and are pissed off.

LindseyNarratesWordress's picture

You are fucking TERRIFIED that you KNOW, in-your-heart, that I am right, as I very often am, and BECAUSE I AM RIGHT...

 

YOU, AND THE REST OF THE FOOLS THROWING-YOUR-MONEY INTO THAT (((SCAM))), ARE GOING TO LOSE A FORTUNE.

 

I can not fucking wait.  *chuckles*

 

*smiles seriously*

 

Lindsey

PrezTrump's picture

I already said I know how this ends.

Why are you so pissed I'm making some money?

SAD!

PrezTrump's picture

By your attitude I can tell what a great person you are.  Must have all the friends.

Blue Steel 309's picture

There is nothing more dangerous than a person who has discovered "the truth", but you are often correct.

PrezTrump's picture

Without logic all one can do is shake their head.

quadraspleen's picture

Jesus, will you fuck off wih your capitalised self-worshipping bollocks, already

tmosley's picture

Hahahaha, yes, we are all terrified of the voices in your head.

*LITERALLY QUAKING* in our baby sealskin boots.

zebra77a's picture

I love a fresh morning troller... lots of bites this morning there fred..

Yep! Got my Bitcoin is a scam hook out lots of catches!

VWAndy's picture

When is a good time to take profits? Its a rocket shot by all standards.

PrezTrump's picture

Who knows?  Sell on the way up.  You made money, forget the rest.  <= Wise words if you want to be a great trader.

VWAndy's picture

Aint nothing wrong with walking away with a big profit.

PrezTrump's picture

Haha, lindsey downvotes.  Shehe can't be happy for anyone.  Sad!

Iskiab's picture

With how fast it's been rising, I'd be happy to realize 4x my principal and still have a lot of unrealized gains. I have no idea if it's peaked, but when you see a lot of news articles and documentaries about something it's usually near the top. It's usually how these things go; in the 90s when all the shows about stocks started it was near the peak, right before the financial crisis real estate talk was everywhere, and whenever a business gets a stadium named after them they're about to have hard times.

Politically and socially being a contrarian hurts you, in investments it'll make you a fortune.

VWAndy's picture

If they ever start putting state pension funds in it bail fast. Satoshi for the kill?

zebra77a's picture

bitcoin exchanges can be tracked (until they can't) what that *means* is sure the existing exchanges may upload user data to government x,y,z.  The moment the governments enforce any taxation UPON bitcoin the next crypto coin, the next offshore exchange, the next tumbler will finish them... They know this so that is why they are having such an issue on how to move their chess pieces with the usual thinking they can just corner it and tax it.

One only need study the history of offshore poker, and pirate bay to realize it was never going to be stopped.

bitcoin [itself] however and it's descendent coins when studied to represent even 1% of world GDP MUST attain a value above $500,000 a coin, as it could be estimated 2/3 of the 16 million currently mined coins are investement held, and the remaining 4 million coins would be required to represent a huge trade bloc of GDP.

CJgipper's picture

The issue is that bitcoin is a hedge against fiat printing.  They're showing signs of INCREASING printing, no signs of slowing.

 

1% adoption rates in the developed world.

 

The rise looks bubbly, but the fundamentals strongly favor increases.  May you live in interesting times.

Clock Crasher's picture

I would do it in 5ths or 10ths.  Pick a nice fat candle stick that is parabolic using a weekly chart then sell every Friday every week for x weeks until your all out, then rotate into silver, gold and goldmoney.com.  Bitcon can go through 5,000 on its way to 10,000 or implode in the next 5 minutes.  Would this ZH headline surprise anyone inside this week.

"Bitcoin Exchange so-and-so Closes, Refuses Payments, Trades Below 2,000." on its way to triple digits.

But my money is on Bitcon eclipsing the Tulip & Mississippi manias.  So calling the top is going to be hard.

Perhaps 10:1 Gold:Bitcon would be a good peak.  Who the fuck knows.  We are in uncharted territory, Bitcon is accessible to the planet and there is a lot of money on the planet right now.

opport.knocks's picture

Yep, everyone is looking for financial lifeboats. And you don't want to be in an overcrowded lifeboat manned by untrusted cutthroats. But then picking a deck chair to use as a flotation device is not a good strategy either.

Txpl9421's picture

Because gold and silver returns have been so great.

SoDamnMad's picture

I think it is more about the people taking their money out of Russia much like the rich Chinese have done.  Not sure they will flock to Vancouver but there are a lot of gorgeous places on Cyprus with Russian being spoken everywhere.

Blue Steel 309's picture

Explaining human behavior with formal logic is foolish and in some cases insane.

BlindMonkey's picture

Saying that crypto is a pump n dump shows you've NEVER mined crypto and have no idea what you are talking about.  

 

 

Thanks for playing.

PrezTrump's picture

I mine, yet I think you are one of the poor bastards that will get raped.  

Sabibaby's picture

you haven't even been here a year. Get lost with your "told you so" bullshit we've been talking about bitcoin since it was a buck!

aurum4040's picture

Lmao, a scam, roflmao. Whew. When you find the next epic scam, please let me know, because I will be buying said scam early and often.

 Re: Anonomynity - ever here of a little crypto called Monero Tylers and other ignorant ZHrs? Hint - Perhaps the recent Bithumb listing along with the so called anonomynity 'scare' is why Monero aka XMR tripled in the last few weeks? Monero is completely anonymous. 

aurum4040's picture

Do you think Russia is going to openly tell the world it's true plans on cryptos? Not a chance in hell. They pulled back because they realize the potential of the situation. Announcing Crypto plans such as controlling 30% of mining power is 10% worse then pre-announcing gold purchases. Which is why they came out with a total renege today, on a day of a new ATH 

PrezTrump's picture

They don't even understand bitcoin.  Monero is an alien concept. Anonymity? What that?

Clock Crasher's picture

Jesus!  This is going to be epic.  

WeekendAtBernankes's picture

Let's be honest. You fuckers want Bitcoin to stop. If you didn't you'd shut the fuck up and let people live their lives, feeding you money. But they don't. So. Who's side are you really on?

ky8's picture

I do want it to stop because i reaLIZE IT'S JUST a mind fuk psy-op predictive programming scam being run to condition people for the cashless system are masters are trying to force us into.

tmosley's picture

Does your cheese control the weather?