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.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
HRClinton's picture

No, it's not a BTC or crypto problem, but a (((Kabal))) problem. 

(((Moiseev))) is their Sayanim agent at the RCB. 

And you thought that Putin "cleaned house"?  Yes, everywhere but where it matters most: at the (((infested))) Central Bank.

The Dutch Guy's picture

Yeah, keep on saying that. The price in usd is 4620,-
When do you stop? At 5k, 10k or 100k? My gold and siver is still there, but Btc and my alts are the stars of my portfolio. Look into some of the ico's. There are Some that really add something and there is lots of money to be made.

zebra77a's picture

I TOLD/WARNED YOU, ALL!!!  (((FIAT))) 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.

  - There fixed it for yah...

Average lifespan of a fiat (ironically hosted on a bitcoin page) is 27 years...

The Cooler King's picture



I told you all!!! I invented the internet!!!


Mustafa Kemal's picture

"a God damned fool, ignorant-to-history."

Lindsey, what does history tell us about blockchain technology?


PrezTrump's picture

FUD.  There are a lot more suckers to hook.

LindseyNarratesWordress's picture

President Trump, there is an adage, that is wholly-appropriate, to this upcoming disastrous situation, for A LOT of "regular people", foolish-enough to try to get-rich-quickly:  "You may lead a horse to water, but you are not able to make it drink the water".



PrezTrump's picture

That applies to you perfectly.  There has been a massive run in crypto, its easy to see how much can be made.  Like you said "You may lead a horse to water, but you are not able to make it drink the water".


I agree; I can see how this ends.  But like I said, we have a lot more suckers to hook.

VWAndy's picture

Sucker play? Like trickin the kids into eating their veggies. These are not for you. These are special veggies for grown ups.

YUNOSELL's picture

Why'd they have to burst my bubble like that?

PrezTrump's picture

BTC is up $500 in 2 days.  

e_goldstein's picture

Thus the FUD to try to slow it down.

Obsidian Samctum's picture

Very possible.

Yo Putin, you tryna buy in at a lower price bruh? All mayne, I feel you, gnomesayin?

PrezTrump's picture

Great point.  They need to FUD while they build that mine.

It sure does looks unstoppable.  But I know the truth.

MANvsMACHINE's picture

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

So what he means is that unless an investment guarantees a positive return, it's dangerous.

HRClinton's picture

It means that unless (((Money changers))) are involved or get to run the Ponzi, it's too risky for (((Them))).

Never ever confuse Pretext with Motive.

Got The Wrong No's picture

Exactly, I said recently that if they can't make money off of it, or control it, you can't have it. 

Cutter's picture

One of the first government shots across the bow of private cryptos.  The Russian government doesn't like anonymity, doesn't like the lack of regulation, doesn't like the lack of government control (read doesn't like the potential for uncontrolled capital flight), etc. etc.  So private cryptos will be regulated like a "security."  

As a regulated "security" is Bitcoin really worth $4600, with no profits, no product, no infrastructure.

Tulip bulbs, tulip bulbs, tulip bulbs.....

Next up the Chinese government, the UK, Germany, the US, etc. etc.  Take your speculative profits why you got them.  

LindseyNarratesWordress's picture

Mr. Cutter, I actually pray-to-God, a few times-per-week, for those smug mother-fuckers, including those smug mother-fuckers, here, at Mr. Durden's site, to lose EVERYTHING that they put into that literal pump-and-dump (((scam))), and WHEN, not "if", it collapses 95%, probably VERY soon--within a few months--, I will be rubbing-my-hands-in-glee at their suffering and misery, because they REFUSE to heed-sage-advice, when it is given by those whom have "been there, and done that".






NB:  Yes, I can be very cold-hearted, and recognize this character-flaw, but I do not care, because those to whom I am cold-hearted, deserve NOTHING BETTER FROM ME.

Obsidian Samctum's picture

Damn, you just HATE to see anyone but yourself successful. Lmao do not worry. You will be praying until you burn in hell. Then, you will pray for mercy.

PrezTrump's picture

You are such a miserable person.

Why don't you sign off the hedge, and find a therapist to talk with?

Seriously. It will help.

LindseyNarratesWordress's picture

Ladies and Gentlement, I have touched-a-nerve...




NB:  Believe it, or not, I am actually trying to help you understand the seriousness of this upcoming financial catastrophe, and, if I was in your situation, I would take my tax-free profits, AND GET-OUT, NOW, WHILE I STILL COULD, but, what does a nine-week-and-two-day poster at ZeroHedge, like myself, know about anything, right?



PrezTrump's picture

You never explained your position.  You are a smug bastard that really has no idea as to the whys.  You took a 50/50 bet, that hasn't worked out yet and won't for a while, yet you celebrate this article as if it was the end of bitcoin.

PrezTrump's picture

You never explained your position.  You are a smug bastard that really has no idea as to the whys.  You took a 50/50 bet, that hasn't worked out yet and won't for a while, yet you celebrate this article as if it was the end of bitcoin.

Cutter's picture

Appreciate the sentiment, but I don't wish anyone losses.  I just wish they would take their head out of the sand and recognize the speculative nature of their crypto investments, and I pray, they are not throwing money at private cryptos they cannot afford to lose.  Every day now, I see advertisements about the next crypto being created, about the next platform that "mints money" with no effort, no energy, etc. etc. etc.   

if you are old, and have seen it all before, its the most obvious--"this time its different"--bubble on the planet, even worse than this bubble market, but we seem unable to convince the crypto crowd who see nothing but blue skies....


LindseyNarratesWordress's picture

Sometimes you have to use "tough-love", to get people to undersand the seriousness of a situation, Mr. Cutter.


I really hope that people, here, at Mr. Durden's site, understand that when (((they))) are ready to dump this pumped-up scheme, (((THEY))) WILL DO IT IN ONE DAY, AND IT WILL CATASTROPHIC--I MEAN THAT THE PEOPLE STILL IN IT WILL HAvE LOST AT LEAST 95+% OF WHATEVER THEY PUT INTO IT, AND THAT IS A CONSERVATIVE ESTIMATE, CONSIDERING THAT, JUST A YEAR AGO, OR SO, (((BITCOIN))) WAS AT ABOUT $200, OR SO.


As I said in my Profile, here--I have been in-the-game for over 20 years, now, and have seen and done MUCH more than the vast majority of people do, at-the-time-of-their-passing, and am still some-what young, so, if people want to ignore the advice of someone whom has already seen previous examples of this kind of (((scam))), and how it will, INEVITABLY, turn-out, then I have ZERO empathy, and ZERO sympathy, for them.



business as stusual's picture

You can lead a person to knowledge but you can't make them think. It is better to be silent and thought a fool, than to speak up and remove all doubt. Wow, freshly hatched 7 week old "expert ". I have taken more profits than I have invested. All of my remaining cryptos are pure profit. They cost me nothing, but according to you, I am about to have my ass handed to me. Well, if what I have experienced so far, is having my ass handed to me, well then shit, hand that motherfucker to me again!!!!!

The Dutch Guy's picture

Oh, now I see: Jealousy is a motherfucker, isn't it?
When you wish the worst for your fellow ZH'ers, you must be an evil and jealous cunt. Good luck with that.

Mustafa Kemal's picture

"Yes, I can be very cold-hearted, and recognize this character-flaw, but I do not care, because those to whom I am cold-hearted, deserve NOTHING BETTER FROM ME."

Yes, you have a cold hearted streak, but I do not. The only reason that I respond to the haters here is because I consider ZH part of the family and want them to prosper.

If I lose everything I have invested in crypto, it would be a small loss. But there is a chance in the next couple of years that I may actually be able to retire on the profits. 

Here is an investment idea where you dont have to mortgage the house: buy .1 BTC and 1 ETH. Downside loss is limited to under $1K.

I guarantee you you or your children wont regret it.

Moreover, you will have to struggle with the cogdis as you berate bitcoiners while you watch your money grow. It will be educational.

GooseShtepping Moron's picture

Russia, as usual, knows what it is doing. Cryptocurrencies are nothing but derivatives; the should be considered as options on purchaser preferences. They are neither money nor an investment.

tmosley's picture

>Can't tell the difference between money and derivatives

How, EXACTLY is crypto a derivative? I never saw a derivative I could use to buy gold online. Nor did I ever see one that increased in value in line with the standard technological adoption s-curve.

Winston Churchill's picture

The supposed good samaritans in Houston rescuing the stranded, were charging peeps $200,

according to a reliable source of mine.Cash NO cryptos.Not all of them but quite a lot.

So not only are the MSM lying again,so is Mosley the pumper and dumper in chief.

I used to think he was just a greedy idiot, now I think his motive more sinister.

Anything that you come by this easily you never get to  keep,Karma, lack of appreciation whatever.

Easy come easy go.

rocmon's picture

Bitcoin is vapor, it needs to be backed by something like gold... then I'll be interested.

ElTerco's picture

The US dollar is backed by "the Full Faith and Credit of the US". Does that still make it an asset?

LindseyNarratesWordress's picture

Those literal fools DO NOT WANT TO HEAR/KNOW THE TRUTH--there is fuck-all backing-up the "currency"--, and become all flummoxed, flustered, and even TERRIFIED, when you ask them to explain how a literal series of 0's and 1's, FROM A FUCKING COMPUTER TERMINAL!!!!, can possibly be considered ANYTHING of value, since there is LITERALLY NOTHING that is tangible to it!!!


This is the LITERAL definition of "psychosis", which, in its most basic definition is, "broken-from-reality".


I can not believe how many people, here, at Mr. Durden's site are literally psychotic, when it comes to (((BitCoin))), and other (((crypto-currencies))), that are LITERAL Ponzi-scheme (((scams))).


It is just fucking nuts, nuts, nuts.



PrezTrump's picture

Lindsey, if you actually care to hear why its worth anything here it is:

Virtually no crypto, BTC included, has any intrinsic value.  The reason it has extrinsic value is for one because it is a vehicle to transfer large funds without gov interference.

The reason it continues to gain is bc the demand is at least flat (actually its way up) while the supply decreases every day.  When the demand starts to drop, it may still continue to gain due to the reduction in supply.  

The real problem with crypto is that there is an infinte amount of coins possible.  Anyone can fork BTC and create a new one.  Yes, it won't end well.  

Here is the difference between you and me:

You never explained your position.  You are a smug bastard that really has no idea as to the whys.  You took a 50/50 bet, that hasn't worked out yet and won't for a while, yet you celebrate this article as if it was the end of bitcoin.

business as stusual's picture

You just described the majority of US dollars in circulation, spent much time doing deductive reasoning?

tmosley's picture

>Bitcoin is a vapor

No, it's a distributed ledger. Pay attention.

Mustafa Kemal's picture

"Bitcoin is vapor"

Vapor no, computation yes.

onmail1's picture

Crypto currency is anti christian

it is the 666

Russians realize it early

tmosley's picture

Did your dog tell you that?

Mustafa Kemal's picture

"Crypto currency is anti christian

it is the 666"

I think you are thinking of the SDR coin ACCHAIN coin

Before that the 666 coin was the FRN

BitchesBetterRecognize's picture

Russia has been studying & making sense on Cryptos since their very inception- even working recently with the Ethereum founder to propose a system where Crytos can coexist in harmony with the Government - and yet again- Putin says NO FUCKING WAY!  Now- bear in mind that Russia has nationalized their central bank, expelled the Rothschild & is all for hard assets & commodities.....

So.... Do the Russians know something about the hidden Crypto system that the entire World refuse to do so? 

LindseyNarratesWordress's picture

It is all a literal (((scam)))--THAT IS ALL THAT THERE IS TO KNOW.


Look, the easiest way to determine the validity, and value, of something, is to determine is INHERENT-USEFULNESS.  (((BitCoin))) has FUCK-ALL behind it, is NOT anonymous, and can be hacked, traced, tracked, etc.


ANYONE saying that this is ANY kind of "investment", and especially a "safe investment", is literally psychotic--"broken-from-reality".


I stand-by everything that I said, 100%.






Never say that you were never warned...

Clock Crasher's picture

Nah, she has spent years forming... she is going to need years getting back to base.

There is no shortage of die-hards.  Crypto bugs make gold bugs look bad.


PrezTrump's picture

Shit, they flash crashed ETH in seconds.  What makes BTC any different?

business as stusual's picture

Oh that's right ETH at ATH, damn that flash crash just fucked everything up.

PrezTrump's picture

I own ETH.  I'm celbrating myself.  But you're one of those that thinks it's forever aren't you? If so your're simply another fool that will be raped.