Bitcoin and Other Cryptocurrencies in Russia

By |2019-11-11T18:25:30+00:00May 22nd, 2019|

The rise of Bitcoin over recent years has led to a flurry of other cryptocurrencies in circulation. Some people view them as a bubble that is bound to burst, while others see them as the way of the future. Regardless of where the truth lies, the cryptocurrency question is especially important in Russia. In a country whose economy struggles under numerous foreign sanctions and whose software engineers helped to spark the current craze, Russia cryptocurrency is a complex issue to understand.

A History of Cryptocurrency in Russia

The history of cryptocurrency in Russia links back to the former Soviet Union. During the Cold War, the Soviet Union sought to create a strong pool of computer engineering and cryptography talent. This led to highly-skilled developers capable of creating cryptocurrencies such as Bitcoin in Russia. At the same time, economists and politicians in Russia’s struggling economy have been against the development of these online currencies. Among these critics is none other than President Vladimir Putin himself. To Putin, cryptocurrency represents an economic threat, and this has led him to push for heavier Russia cryptocurrency regulation.

Buying Bitcoin

Anybody who wishes to bid on Bitcoin or other cryptocurrencies can do so through an online exchange. When you consider how to buy cryptocurrency in Russia, though, you need to keep in mind that President Putin has called for new and stricter regulations to be enacted beginning in July 2019. The new regulations broaden the definition of digital financial assets to include Russia Bitcoin and similar cryptocurrencies. This has the potential to impact several of the online markets that currently sell cryptocurrency. If you are wondering how to buy Bitcoin in Russia, your best bet is to look into online marketplaces soon. With all that said, it is unclear as to how the new regulations will pass or if they will stop the sale of cryptocurrencies in Russia, so it could be that Bitcoin continues to thrive long-term.

Legality of Russian Cryptocurrency

With the new regulations coming, is Bitcoin in Russia legal? The answer to this question depends on what kind of regulations pass, or if they do at all, in the summer of 2019. It seems unlikely that there will be a successful push to make cryptocurrency completely illegal, but the currency could be taxed and regulated like any other business transaction. These new regulations would also make the Russian central bank the key institution in currency emission, including digital currencies. This would mean that unregistered exchanges could face criminal prosecution. The future is uncertain, but the best guess is that at least some cryptocurrency operations will remain legal, while others may face punishment under new laws.

Bitcoin and other cryptocurrencies in Russia are facing many potential changes, but the future is still too murky to see. At the moment, Russia is at the forefront of this new technology, but a lot can change in only a few months. Depending on how the new laws pass, the future of cryptocurrency could shift dramatically, both in Russia and throughout the rest of the world.

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