Russia's Interior Ministry Says Bitcoin Risky, Will Act Based on Central Bank Decisions

The Russian Ministry of Internal Affairs has reportedly said that holders of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term have no recourse in the event of losses, and that in their currently unregulated state, using bitcoins is risky.

"Unregulated status of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term makes operations with them rather risky. Bitcoin holders appear to be absolutely insecure in case of any losses," said Alexey Moshkov, Chief of the Ministry's Special Technical Activities Bureau.

The statements stopped short of expressly suggesting a Bitcoin ban, as recently proposed by the Central Bank. But Moshkov did say that his Ministry defers to the Bank's judgment on the matter and will act according to whatever regulations the Bank develops.

The legal status of Bitcoin in Russia has changed several times during the past year. In early 2014, Bitcoin was formally declared as illegal, but several months later officials said that “such instruments should not be rejected." The ban was re-proposed not long after, and a schedule of penalties for non-compliance was drafted.

This year, the Communications Ministry blocked several Bitcoin-related websites.

The developments come as the country's economy falls further toward recession and its currency approaches new lows against the dollar. Any ban would be viewed by many as a protectionist measure to prevent capital flight.