Russia legalizing Bitcoin and cryptos but not allowed as payment method? - page 4.

audaciousbeing

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Quote from: cheezcarls on July 23, 2020, 11:52:58 PM

Okay so months ago, we thought that they're all set to lay down the axe on Bitcoin and cryptocurrencies in Russia. But right now, lawmakers have passed a bill to legalize cryptocurrencies in their country.

However, there's one section of the bill states that Bitcoin cannot be used as payment method. They do legalize cryptocurrency trading though, but not sure when it comes to crowdfunding, ICOs, etc.

Source: https://cointelegraph.com/news/russian-lawmakers-finally-pass-countrys-major-crypto-bill

Any reactions so far guys?

Every country will do what they believe it's best for their country and economy at the same time not left behind in what is term the technology of the future. Policies change, laws are repealed and new laws are made to reflect current happenings which is why I am not perturbed because it's a process to full adoption. Now is recognition and it's still a win from where crypto is coming from for the past ten years.

Artemis3

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Its one of the stupidest things you could imagine, but I'm not surprised. Putin wants his own crypto...

Of course, this means that "possession" in theory isn't illegal, But people doing transactions would need to be more careful, and preferably cover their tracks pretty much the same way as if they banned it altogether.

Until all the old fools leave, the politicians will always find ways to make everyone's lives miserable. Removing the idea that the State can intervene the money at anytime, is fundamental to stop them outlawing the very thing that could save everything.

But as i have always said: Any country that bans Bitcoin, simply is banning wealth that goes around to their neighbors. Let Putin drown with his own unwanted coin while the wealth of bitcoin flows elsewhere.

Drugs? Laundering? 10 years and they are still using those silly arguments? As if their mafias didn't use their fiat money (Rubles or whatever its called).

Benefactor

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I've read a few news feeds about Russia before, but I haven't found any. Most of them were misinformation and fake news. Russia legalizes bitcoin and cryptocurrencies but does not approve them as payment methods. This is because the Russian government does not want the people of their country to convert bitcoin and cryptocurrencies into Russian currency. But if the Russian government approves cryptocurrency, it will be good news for the country.

gentlemand

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Quote from: Jeobox on July 24, 2020, 10:46:24 PM

Sounds like a bunch of old people trying to legislate something they don't understand.

But it might be enough to achieve their aims. Forbidding its use as a payment medium won't deter a small number of people who were never going to be deterred regardless, but it is enough to turn off most of the population and that's what they'll want.

They need to pair it with stopping exchanges in Russia as well.

China has done the same and had they not done that it would be a much more powerful presence there.

Rafael_Carrero

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Quote from: Jeobox on July 24, 2020, 10:46:24 PM

Sounds like a bunch of old people trying to legislate something they don't understand.

That's true. Russian government considers Bitcoin as shadow economy payment method. They believe that Bitcoin is mostly used for buying drugs.

tsaroz

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Their concern is same as every government. They want full control over the money in the nation. Taxes are one of the largest income for the government and going crypto may make it easier to hide a trade ever happen or ever got paid.
The reason they want crypto are also the same. The government don't want people and other nation what trades and payments they are doing nationally and internationally. It's also a tool to escape embargo on Russia.

Zackgeno96

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Quote from: sunsilk on July 24, 2020, 12:44:12 AM

If they prohibit the use of bitcoin as a payment method, then bitcoin users have to convert and trade it to fiat first for something that they have purchased. Russians will look to the positive news that the fact this bill is for the adoption of bitcoin for trading.

The last part of the news is about Russia's central bank being charged as the regulator for most crypto that will land on their country. That will be the other country's move if they adopt and regulate bitcoin.

It will be big news if it's finally a law.

The Russians can even use the crypto debit cards which are now pretty cheap if we compare them to the times when they were pretty new in the market and were a lot costly than now. Also, I recently saw a news in which it was stated that the Russian government is looking forward to building their own cryptocurrency, so maybe this can be the reason to why they aren't legalizing the payments with bitcoins locally as they want their cryptocurrency to be widely used in their country rather than encouraging people to use bitcoins for payment. Once the Russian crypto will reach mass adaption in their country then they would most probably change the law and might allow the local bitcoin payments.

Argoo

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Quote from: hatshepsut93 on July 24, 2020, 06:11:16 AM

Really strange decision - if they are scared that Bitcoin will undermine ruble, why allow trading? If they are not scared, why ban payments? Russia yet again is being paranoid for no reason.
This decision makes me think that there will be very serious surveillance around their legal exchanges, and if I were in Russia, I would prefer to trade only on decentralized exchanges.

Like with the recent news from China, it's a net positive, but it's not huge. Still, would be nice if the "at least not banned" trend will continue.

In fact, such a decision is very positive for Russia and there could not be a more favorable solution for cryptocurrency so far. The Russian Constitution says that the only means of payment in the country is the ruble. Therefore, it was even proposed to establish criminal liability for the use of cryptocurrency as a means of payment. Only in the second reading was the criminal and administrative liability for this excluded. In order to allow the use of cryptocurrency as a means of payment, first need to change the Constitution of Russia, and now no one will go for it.

verita1

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Perhaps it is because it is not a definitive project for the reason that cryptocurrencies will not be allowed in Russia as a payment method yet.

I also see that lawmakers are interested in the law allowing Russian companies to issue stablecoins tied to the price of the US dollar. One thing if it is true Russia wants to digitize currencies and it is an interest that is happening in several nations.

Which highlights that the traditional banking system is showing that it needs a restoration to provide an efficient service in finances and in the economy.

Jeobox

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Sounds like a bunch of old people trying to legislate something they don't understand.

Janation

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It is just like informing the country about cryptocurrencies.

If they don't allow it as a payment method, I guess they are wanting to introduce it as an asset, I guess that is why they are also letting their local to create cryptocurrencies. That is my opinion though.

Darker45

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Quote from: crwth on July 24, 2020, 01:47:10 AM

So if I understood it correctly, they are actually trying to prevent peer-to-peer transactions...

I haven't read the entire bill but I don't think they are actually trying to prevent peer-to-peer transactions. Because how can they do it?

As far as my understanding is concerned, by not allowing it as a payment method they do not recognize it as a legal tender or as a money. And this is nothing strange. I mean, our country does not recognize Bitcoin as a legal tender either. Bitcoin is not a legal money here.

We are buying and selling Bitcoin, sending and receiving it, sometimes in and out of the country but not in fact as money. Bitcoin simply acts as sort of carrier of value.

gentlemand

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Bleurgh.

They're so full of shit and have spouted so much shit it's barely worth paying any attention any more.

I guess this is a pragmatic choice for a dictatorship filled with suckling assholes lining their pockets but I'll believe it when I see it.

adzino

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Quote from: cheezcarls on July 23, 2020, 11:52:58 PM

Okay so months ago, we thought that they're all set to lay down the axe on Bitcoin and cryptocurrencies in Russia. But right now, lawmakers have passed a bill to legalize cryptocurrencies in their country.

However, there's one section of the bill states that Bitcoin cannot be used as payment method. They do legalize cryptocurrency trading though, but not sure when it comes to crowdfunding, ICOs, etc.

Source: https://cointelegraph.com/news/russian-lawmakers-finally-pass-countrys-major-crypto-bill

Any reactions so far guys?

Good they made it legal (i mean they don't even know what to do with this. At least they finally came to a stance). Making it illegal to make payments using bitcoin is understandable to be honest. I mean, they will be forced to convert it into fiat currency. This way the government won't have any issue tracking the users (since fiat conversion will probably require some sort of ID) and will probably add new rules so that they can even tax those people who converts it.

Ucy

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Any reason why it should not be used as payment method?
Well, I think governments should really focus on making sure it is used as payment method in safe and right manner. This should be possible if Bitcoin is very safe to use.
By the way, no country controls Bitcoin alone. It does not have the name, symbols, signature etc of any particular country on it. It's a decentralized currency owned and controlled by people allover the world... more like how Gold, silver are "decentralized" .
It won't really be a good idea to tell people not to exchange gold or silver for goods and services especially as they aren't really owned by any particular country.
I think safe use of Bitcoin for payments should be the main focus.

usekevin

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Quote from: cheezcarls on July 23, 2020, 11:52:58 PM

Okay so months ago, we thought that they're all set to lay down the axe on Bitcoin and cryptocurrencies in Russia. But right now, lawmakers have passed a bill to legalize cryptocurrencies in their country.

However, there's one section of the bill states that Bitcoin cannot be used as payment method. They do legalize cryptocurrency trading though, but not sure when it comes to crowdfunding, ICOs, etc.

Source: https://cointelegraph.com/news/russian-lawmakers-finally-pass-countrys-major-crypto-bill

Any reactions so far guys?

Legalisation is different and accepting as one of payment is different. Because legalising is to monitor the flow of virtual currency in their through the taxation method. But we can't be sure it will be accurately match and all the people who inverse in crypto currency will pay the tax for the trading and investment of their money. Accepting as a payment is the last step of this process. Once the law made, the people who do business accepted it as a payment option.

thesmallgod

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They are technically telling you that they are not ready to get their currency holding a competition with any crypto especially when used as payment processor which also mean you will need to convert any crypto into fiat before spending. It is still OK than banning the coin. Maybe they are trying to safe business that might want to be accepting it as payment from losing part of their profit due to crypto market volatility.

hotmom

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I think this is just the first step. Perhaps the society in Russia is not ready for this yet, so the adoption will be gradual.

ShowOff

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Quote from: hatshepsut93 on July 24, 2020, 06:11:16 AM

Really strange decision - if they are scared that Bitcoin will undermine ruble, why allow trading? If they are not scared, why ban payments? Russia yet again is being paranoid for no reason.
This decision makes me think that there will be very serious surveillance around their legal exchanges, and if I were in Russia, I would prefer to trade only on decentralized exchanges.

Like with the recent news from China, it's a net positive, but it's not huge. Still, would be nice if the "at least not banned" trend will continue.

So far Indonesia has not given permission to bitcoin user to use it as a legal payment tool, but the government has given permission for bitcoin user to trade where bitcoin can now be traded legally on commodity exchange and every exchange operating in Indonesia must comply with government regulation . KYC become mandatory and I am very confident that the government in this way will benefit through taxes that must be paid by the bourse.

I think the same condition apply to Russia even though I am not sure what the real reason they are thinking. It is only speculated that they fear that if bitcoin is allowed as a means of payment, it will disrupt their countrys financial and economic system.

kryptqnick

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Quote from: cheezcarls on July 23, 2020, 11:52:58 PM

Okay so months ago, we thought that they're all set to lay down the axe on Bitcoin and cryptocurrencies in Russia. But right now, lawmakers have passed a bill to legalize cryptocurrencies in their country.

However, there's one section of the bill states that Bitcoin cannot be used as payment method. They do legalize cryptocurrency trading though, but not sure when it comes to crowdfunding, ICOs, etc.

Source: https://cointelegraph.com/news/russian-lawmakers-finally-pass-countrys-major-crypto-bill

Any reactions so far guys?

I've read about it on a Russian website after seeing this thread, and it seems that not only cryptos are not allowed to be used as payment, but there's also a ban on advertising of such payment option. And it seems that the bill recognizes cryptos as property (which is coincidentally similar to the recent crypto policies of China). Moreover, all crypto owners have to officially declare their cryptos (and pay taxes, I think). So I'd say it's not great news for crypto users in Russia, and even more so for people there who treat Bitcoin as money.

Topic: Russia legalizing Bitcoin and cryptos but not allowed as payment method? - page 4. (Read 908 times)