Topic: Russia warns against using bitcoins - page 2. (Read 3298 times)
Most of the closed banks in Russia did not "crash", they had their license pulled for various official reasons but word on the street is they are cracking down on money laundering. Most businesses around here avoid taxes and the banks are playing their part in that, at a fee of 6-10%.
Of course they're going to hate Bitcoin! But the Russian people will still want it because having more than $21,000 in a Russian bank doesn't seem attractive.
It is not a problem. If you have $210,000 just open 10 accounts in 10 different banks. If you have $2,100,000 just open 100 accounts in 100 different banks 
Opening a bank account usually takes a couple of days. Good look spending half a year just to secure your $2M
Btw, my russian colleague has just given me a website where you find all the crashed banks log
http://www.banki.ru/banks/memory/
Google translate doesnt work for me, but at least you can see dates.
Of course they're going to hate Bitcoin! But the Russian people will still want it because having more than $21,000 in a Russian bank doesn't seem attractive.
It is not a problem. If you have $210,000 just open 10 accounts in 10 different banks. If you have $2,100,000 just open 100 accounts in 100 different banks LOL. 15 Russian banks have just collapsed with almost-complete deposit losses, their deposit insurance fund is empty, but they are warning people against the use of bitcoin.
The second most ridiculous statement about bitcoin after Cyprus central bank
The second most ridiculous statement about bitcoin after Cyprus central bank
Do you have more info on that?
Got this news from one of my contractors who lives in russia. I asked him to send me the complete list of sources and will post it soon.
It's 3 medium banks and 12 small banks that were crashed. More banks collapses are coming soon as insurance fund was depleted to partially cover deposits from the first 3 banks.
That was published in their regional press in multiple small articles. For obvious reasons they don't publish it at once at prime time. I wonder why western media still is not aware of this issue.
I'm surprised that Russians are still keeping their money in banks. Don't they remember how it was in 1998 when almost all the russian banks crashed with complete loss of deposits?
I found this article online
http://www.bdlive.co.za/world/europe/2014/01/10/russia-revokes-siberian-banks-licence
Quote
MOSCOW — Russian regulators have cancelled the licence of AKB Novokuznetsk Municipal Bank (NMB), saying that the Siberian lender made high-risk loans and allowed its owners to borrow from the company.
The Russian central bank said in a statement on its website on Thursday that NMB was running "a high-risk credit policy" and not adequately creating reserves for possible loan losses. The bank, which was among Russia’s top 300 lenders by assets as of last month, did not fulfil its obligations to creditors and depositors because of insufficient cash flow, the regulator said.
NMB said depositors with as much as 700,000 rubles ($21,000) are entitled to a full reimbursement from the Deposit Insurance Agency.
Payments would begin by January 23, the agency said on its website. NMB’s press office did not respond to calls seeking further comment.
The regulator has accelerated its crackdown since November 29 when it revoked the licence of Master Bank, Russia’s 41st largest lender by assets, for money-laundering violations. Midsize lenders Project Financing Bank and Smolensky Bank were also shuttered on December 13, and Investbank was closed after failing capital adequacy reviews.
The central bank has revoked about 30 banking licences since July 1 when Elvira Nabiullina succeeded Sergey Ignatiev as governor, compared with three in the first half of the year. She is striving to tighten regulation of banks and curtail net capital outflow, forecast at about $55bn last year.
NMB, which focused on the Kemerovo region of Siberia, was set up in 1994 and provides services to firms and individuals, according to its website.
An unidentified NMB director is being probed for allegedly transferring cash from the bank to other lenders in Russia to repay debts, according to a statement on Thursday by the Russian Investigative Committee. This had resulted in depriving the bank of sufficient reserves to cover its clients’ loans, according to the statement.
The Russian central bank said in a statement on its website on Thursday that NMB was running "a high-risk credit policy" and not adequately creating reserves for possible loan losses. The bank, which was among Russia’s top 300 lenders by assets as of last month, did not fulfil its obligations to creditors and depositors because of insufficient cash flow, the regulator said.
NMB said depositors with as much as 700,000 rubles ($21,000) are entitled to a full reimbursement from the Deposit Insurance Agency.
Payments would begin by January 23, the agency said on its website. NMB’s press office did not respond to calls seeking further comment.
The regulator has accelerated its crackdown since November 29 when it revoked the licence of Master Bank, Russia’s 41st largest lender by assets, for money-laundering violations. Midsize lenders Project Financing Bank and Smolensky Bank were also shuttered on December 13, and Investbank was closed after failing capital adequacy reviews.
The central bank has revoked about 30 banking licences since July 1 when Elvira Nabiullina succeeded Sergey Ignatiev as governor, compared with three in the first half of the year. She is striving to tighten regulation of banks and curtail net capital outflow, forecast at about $55bn last year.
NMB, which focused on the Kemerovo region of Siberia, was set up in 1994 and provides services to firms and individuals, according to its website.
An unidentified NMB director is being probed for allegedly transferring cash from the bank to other lenders in Russia to repay debts, according to a statement on Thursday by the Russian Investigative Committee. This had resulted in depriving the bank of sufficient reserves to cover its clients’ loans, according to the statement.
So the Russian banks are shaky, deposit compensations funds are low are they're worried about capital outflows ($55bn last year).
Of course they're going to hate Bitcoin! But the Russian people will still want it because having more than $21,000 in a Russian bank doesn't seem attractive.
If oil prices tank Russia is in big trouble!
LOL. 15 Russian banks have just collapsed with almost-complete deposit losses, their deposit insurance fund is empty, but they are warning people against the use of bitcoin.
The second most ridiculous statement about bitcoin after Cyprus central bank
The second most ridiculous statement about bitcoin after Cyprus central bank
Do you have more info on that?
Got this news from one of my contractors who lives in russia. I asked him to send me the complete list of sources and will post it soon.
It's 3 medium banks and 12 small banks that were crashed. More banks collapses are coming soon as insurance fund was depleted to partially cover deposits from the first 3 banks.
That was published in their regional press in multiple small articles. For obvious reasons they don't publish it at once at prime time. I wonder why western media still is not aware of this issue.
I'm surprised that Russians are still keeping their money in banks. Don't they remember how it was in 1998 when almost all the russian banks crashed with complete loss of deposits?
It's easy to explain why. Russia is afraid of BTC. Many Russians just don't trust their local currency, nor their government. This makes BTC automatically attractive, and I guess this official advice will make BTC even more attractive.
Russia is afraid of anything they can't control. I think its been fairly well known that they would ban Bitcoin eventually. If Putin can't control it, its deemed illegal. Russia is so close back to communism these days. Just another step in that direction.
It's easy to explain why. Russia is afraid of BTC. Many Russians just don't trust their local currency, nor their government. This makes BTC automatically attractive, and I guess this official advice will make BTC even more attractive.
LOL. 15 Russian banks have just collapsed with almost-complete deposit losses, their deposit insurance fund is empty, but they are warning people against the use of bitcoin.
The second most ridiculous statement about bitcoin after Cyprus central bank
The second most ridiculous statement about bitcoin after Cyprus central bank
Do you have more info on that?
There is a bunch of upheaval right now. The German central bank said bail ins are going to need to be done by countries before other countries help them out. That's the type of thing that led to the Cyprus issue and the big rise in BTC value. But at the same time they arrested the bitinstant guy, maybe to make sure btc value doesn't go too high today!
LOL. 15 Russian banks have just collapsed with almost-complete deposit losses, their deposit insurance fund is empty, but they are warning people against the use of bitcoin.
The second most ridiculous statement about bitcoin after Cyprus central bank
The second most ridiculous statement about bitcoin after Cyprus central bank
Actually, I read elsewhere that the end basically says it's illegal to trade bitcoins for anything in Russia: currencies or products. Is this true? Cause if so, that's a ban.
No it's not ban by law. But it means that they tend to ban it. Popular bitcoin-related exchange metabank.ru has suspended its work already (until resolution of the legal aspect).
Bears on monocycles don't like innovative economics
Actually, I read elsewhere that the end basically says it's illegal to trade bitcoins for anything in Russia: currencies or products. Is this true? Cause if so, that's a ban.
Russian news: http://www.mn.ru/business_finance/20140127/368594774.html
Idea here is that Central Bank of Russia warns people, organizations, and banks against using bitcoins because this operations potentially dubious.
Due to anonymous nature of transactions in bitcoins it can be used for money laundering and financing of the terrorism.
So, it looks like Russia goes in Chinese way in interpretation of bitcoins
PS.
Here is original press-release of central bank of Russia: http://www.cbr.ru/press/PR.aspx?file=27012014_1825052.htm
And google-translated text:
Idea here is that Central Bank of Russia warns people, organizations, and banks against using bitcoins because this operations potentially dubious.
Due to anonymous nature of transactions in bitcoins it can be used for money laundering and financing of the terrorism.
So, it looks like Russia goes in Chinese way in interpretation of bitcoins
PS.
Here is original press-release of central bank of Russia: http://www.cbr.ru/press/PR.aspx?file=27012014_1825052.htm
And google-translated text:
Quote
Information
On the use in transactions "virtual currency ", in particular , Bitcoin
The Bank of Russia said that recently in the world have a certain distribution of the so -called "virtual currency " , in particular, Bitcoin . By "virtual currencies " and there is no provision for them legally obliged entities . These operations are speculative in nature, carried out on the so -called "virtual exchanges " and carry a high risk of loss of value.
The Bank of Russia warns citizens and legal entities , primarily credit institutions and non-credit financial institutions , the use of "virtual currency " for them in exchange for goods ( works, services) or cash in rubles and foreign currency.
According to article 27 of the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia ) " issue in the Russian Federation monetary surrogates prohibited.
Due to the anonymous nature of the activity for the production of "virtual currency " unlimited range of actors and to use them for transactions citizens and legal persons may be , including unintentionally involved in illegal activities , including the legalization (laundering ) of proceeds from crime and terrorist financing .
The Bank of Russia has warned that Russian legal entities providing services for the exchange of "virtual currency " in rubles and foreign currency , as well as for goods (works , services ) will be considered as a potential involvement in the implementation of suspicious transactions in accordance with the legislation on counteraction to legalization (laundering ) proceeds of crime and financing of terrorism.
January 27, 2014
Using materials reference to the press service of the Bank of Russia is required .
On the use in transactions "virtual currency ", in particular , Bitcoin
The Bank of Russia said that recently in the world have a certain distribution of the so -called "virtual currency " , in particular, Bitcoin . By "virtual currencies " and there is no provision for them legally obliged entities . These operations are speculative in nature, carried out on the so -called "virtual exchanges " and carry a high risk of loss of value.
The Bank of Russia warns citizens and legal entities , primarily credit institutions and non-credit financial institutions , the use of "virtual currency " for them in exchange for goods ( works, services) or cash in rubles and foreign currency.
According to article 27 of the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia ) " issue in the Russian Federation monetary surrogates prohibited.
Due to the anonymous nature of the activity for the production of "virtual currency " unlimited range of actors and to use them for transactions citizens and legal persons may be , including unintentionally involved in illegal activities , including the legalization (laundering ) of proceeds from crime and terrorist financing .
The Bank of Russia has warned that Russian legal entities providing services for the exchange of "virtual currency " in rubles and foreign currency , as well as for goods (works , services ) will be considered as a potential involvement in the implementation of suspicious transactions in accordance with the legislation on counteraction to legalization (laundering ) proceeds of crime and financing of terrorism.
January 27, 2014
Using materials reference to the press service of the Bank of Russia is required .
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