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    November 21, 2017

    Russia: Regulators will ‘never’ consider Bitcoin a legal entity

    Russia cryptocurrency regulation

    In a new press conference, Russia’s Ministry of Communications has quipped that the nation will ‘never’ legalize Bitcoin within its economy.

    The Russian government has previously expressed its interest in developing its own CryptoRuble through Blockchain technology, though the country’s Ministry of Communications has now quipped that there is little likelihood of the nation ever legalizing Bitcoin within its economy.

    Nikolay Nikiforov offered these remarks at the first gathering of the Russian National Youth Forum, wherein the Minister of Communications cited that “Bitcoins are a foreign application of Blockchain technology, and Russian law will never consider them as a legal entity under the jurisdiction of the Russian Federation”.

    Read: CME clearing member says Bitcoin, cryptocurrencies have “no fundamental basis”

    Russia remains a hotbed of mixed sentiment surrounding the use of cryptocurrencies and the Blockchain; in October this year, Bitcoin suffered a flash crash as Russian officials promised to ban cryptocurrency exchanges within its borders.

    Similarly, Russian President Vladimir Putin recently issued a sweeping condemnation of digital currencies, in which the statesman described Bitcoin as a pyramid scheme, commenting that “We have seen how Bitcoin has transformed a payment unit into an asset, which is bought in order to obtain a high yield in a short period of time. This is the definition of a pyramid.”

    Putin recently confirmed that his government would aim to further regulate ICOs and cryptocurrency mining by July of 2018.

    Those remarks fall in stark contrast to those of Russian First Deputy Prime Minister Igor Shuvalov, who recently indicated his support for cryptocurrencies and advocated his belief that a CryptoRuble should exist.

    Nikiforov recently confirmed that a Russian CryptoRuble would be issued, controlled, and maintained only by authorities at some point in the near future.

    Read: Warren Buffet reiterates stance on Bitcoin, calls cryptocurrency ‘a real bubble’

    What are your thoughts? Is Russia wise to pursue its own cryptocurrency at the expense of other digital currencies, such as Bitcoin? Be sure to let us know your opinion in the comments below!

    Follow Bryan Smith on Twitter: @bryansmithSA

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