Bitcoins cannot be used in Russia - Prosecutor General’s Office

The use of bitcoins and other cryptocurrencies carries the risk of violating citizens’ property rights and cannot be used in Russia, the country’s Prosecutor General's Office concluded after meeting with the Central Bank, FSB, and Interior Ministry.

“The monitoring of the use of virtual currencies shows an increasing interest in them, including for the purpose of money laundering, profit obtained through illegal means,” ITAR-TASS quoted the Prosecutor General’s Office as saying.

“Russia’s official currency is the ruble. The introduction of other types of currencies and the issue of money surrogates are banned,” the statement says, meaning that cryptocurrencies - the most popular of which is bitcoin - cannot be used by Russian citizens.

Bitcoins cannot be used in Russia - Prosecutor General’s Office

So what so this mean for the future of bitcoin? Well in my opinion not a lot. Sure there will be a dip in price but if there is one thing that that remains consistent with Bitcoin (BTC) is its ability to keep bouncing back.

So BTC is only worth what people will pay for it, its not backed by anything. Thats what makes it a fiat currency just like all the other currencies of the world. Its evolved a lot in the last year, you can even print your BTC onto paper in the form of a paper wallet

My advice is wait till the price drops and then buy it up. The price dropped by 60% when china banned the use of BTC and then bounced back to about 80% of its highest value in just a couple of months. That's a double your money venture right there guys.

One could simply do all transactions out of the country via a foreign server and still not be breaking the law. I'm not impressed.

reply to post by PhoenixOD


I was just looking into buying some bitcoins and trying to mine and even investing in gold and silver..but ya bitcoin is high gold is high...silver looks ok to me...thought it might be nice to add some odd currencies to the old survival bin....but ya i found bitcoin quite confusing at first and still dont quite get it all. It is tough to find vendors. I was actually considering trying to sell music and take bitcoin as payment just out of the rare case that someone may want to pay in bit coin.

reply to post by cosmicexplorer


I use mtgox to buy my bitcoin. You can do a bank transfer to them and when it is cleared you just buy bitcoin with the balance. I found it very easy.

reply to post by PhoenixOD


thx mate i will look into that

reply to post by PhoenixOD


He is not outlawing bitcoin he is simply stating that the state will not recognize bitcoin or accept domestically other currency than the ruble. This can probably be tested while the Winter Olympics are running do they accept dollars or euros ? If so, he just lied in the statement.

There is no way to restrict the use of bitcoin itself unless creating a specific law to make holding bitcoins illegal. A currency in its losses form can be anything (even pebbles or shells), it just needs to be acceptable between tow parties in a trade as a representation of value.

reply to post by PhoenixOD


I'd steer clear of MtGox for the time being, people are having a lot of trouble getting their money and Bitcoins out of there.
There are other exchanges.

Mt.Gox Halts Withdrawals

reply to post by PhoenixOD


So now a sketchy company, which has had numerous security issues, and frequently refuses to pay out in currency of choice, if at all, has your money and has your bitcoin and has all your banking info? Not very smart.

reply to post by FlapdoodleStork


i swapped 2 of my bitcoins for doge coins the other day without any problems when withdrawing BTC from mt.gox

reply to post by PhoenixOD


You got lucky then.

Mt.Gox press release

reply to post by cosmicexplorer


I use localbitcoin. Makes it easy to find vendors, holds the transaction in escrow for both parties and is fast. I've never had a problem with it.

reply to post by CraftBuilder


thx brother ...appreciate the info...ill check that one out as well.

FlapdoodleStork
reply to post by PhoenixOD

 

I'd steer clear of MtGox for the time being, people are having a lot of trouble getting their money and Bitcoins out of there.
There are other exchanges.

Mt.Gox Halts Withdrawals

edit on 7-2-2014 by FlapdoodleStork because: (no reason given)

I've never trusted magic the gathering online exchange, either. I have to rely on local places to take money and give me btc. works ok, but i don't like mtgox. magic the gathering... sigh

and I don't trust btce.

they're russian too, interestingly.

PhoenixOD
reply to post by FlapdoodleStork

 

i swapped 2 of my bitcoins for doge coins the other day without any problems when withdrawing BTC from mt.gox

edit on 7-2-2014 by PhoenixOD because: (no reason given)

$1400 at least on a scamcoin?

man.. give me some, I'm not a scamcoin!!!!!!!!

lol

sn0rch

PhoenixOD
reply to post by FlapdoodleStork

 

i swapped 2 of my bitcoins for doge coins the other day without any problems when withdrawing BTC from mt.gox

edit on 7-2-2014 by PhoenixOD because: (no reason given)

$1400 at least on a scamcoin?

man.. give me some, I'm not a scamcoin!!!!!!!!

lol

Well considering BTC is down 30% and doge just went up i think i did quite well

reply to post by PhoenixOD


Haha that's not really the coin though, more the people pushing it right now.

I cant get to btc-e. Looks like there is yet more evil terror occurring in the world of crypto... :/

sn0rch
reply to post by PhoenixOD

 

Haha

that's not really the coin though, more the people pushing it right now.

I cant get to btc-e. Looks like there is yet more evil terror occurring in the world of crypto... :/

Well the market capitalization of BTC has fallen from $10000000000 to $8000000000


While Doge has gone from$56000000 to $89000000.


Thats real value not hype.