Assets, Bitcoin

Is Bitcoin Banned in Russia?

As of September 2017, Bitcoin and other digital currencies are outlawed in Russia as money substitutes, but are not illegal as investments. The Ministry of Finance of the Russian Federation has prepared a draft law “On Digital Financial Assets”, which includes regulation of Bitcoin.

The draft law is under consideration by the State Duma.

NOTE: WARNING: The status of Bitcoin in Russia is currently in flux and the legal landscape surrounding it is constantly changing. It is important to stay up to date with the latest developments as the regulations may, at any time, change in order to either restrict or allow the use of Bitcoin. Currently, it is not illegal to buy, sell or own Bitcoin in Russia but there are restrictions on its use as a payment method. Therefore, caution must be taken when using Bitcoin in Russia.

In March 2018, the Central Bank of Russia issued a statement prohibiting the use of cryptocurrencies as payment instruments. The statement reads, “the use of digital money (cryptocurrencies) as a payment instrument is legally prohibited in the Russian Federation”.

In July 2018, the Bank of Russia issued a warning to consumers about the risks associated with buying, selling, or using digital currencies. The warning reads, “there is a high risk that digital currency transactions may be used for criminal purposes”.

Overall, it appears that Bitcoin is currently banned in Russia as a payment instrument, but is not illegal to own or invest in. It remains to be seen how the Russian government will regulate Bitcoin and other digital currencies in the future.

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