Regions

Russia prohibits use of Bitcoin

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February 8
10:13 AM 2014

Russia has banned the use of Bitcoin by individuals or legal entities, according to TechCrunch.

The Central Bank of Russia echoed its reminder that since the Ruble is the official currency, Bitcoin is just a substitute for money. Therefore, the digital currency is now banned in the country. This is largely due to reports that Bitcoin is being used for money laundering and other illegal activities, the report explained.

Banning the cryptocurrency will not immediately stop everyone from using it. However, Russia-based Bitcoin businesses should at least move to another location since they will surely be targeted by the Russian government, the report noted.

Bitcoin was designed to be an unregulated currency. However, as time went by, several countries and official organizations have decided to regulate it. Texas, New York, and Germany are examples of places that have declared Bitcoin's status as a currency and attempted to regulate it, the report detailed.

Bitcoin's days as unregulated currency may be coming to an end soon. Russia's decision to ban it is just a radical step towards the digital currency's regulation, TechCrunch reported.

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