Russia U-Turn: Bitcoin Forex Trading to Be Legal, Mining Banned

Russia’s Deputy Finance Minister, Alexey Moiseev, has revealed that the latest version of the draft law would treat cryptocurrency trading just like foreign currency exchange (forex), allowing its purchase and subsequent use abroad for Russian citizens.

Russian authorities want to equate Bitcoin to foreign currency, revealed Deputy Finance Minister, Alexey Moiseev, reports Ria Novosti. Moreover, while their issue or “mining” in the country would be prohibited, Russians will be able to nevertheless buy cryptocurrency and then use it or sell it abroad for profit just like forex trading.

At the same time, Moiseev once again reminded that the Ministry of Finance is continuing to work on the draft law that would penalize users of Bitcoin and other cryptocurrency in Russia.

“Our goal is to stop the circulation of cryptocurrency in Russia,” he continued. “According to the constitution, the only currency in the country is the Ruble. Its only issuer is the Bank of Russia. Therefore, the issue of any other currency is illegal.”

At the same time, Russia’s Deputy Director of the Federal Financial Monitoring Service has been holding talks between the Central Bank and the Ministry of Finance on the possibility of using a national cryptocurrency, which some have dubbed “BitRuble.”

The BitRuble would be a far cry from the open-access Bitcoin network, however. Instead, it would be a centralized currency similar to the existing (digital) Ruble, but one that would be operated using a private blockchain that’s controlled by a single entity, i.e. the Bank of Russia.