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Russian law to criminalize the use of Bitcoin or cryptocurrencies as money surrogate

Santhosh M



Russian law to criminalize the use of Cryptocurrency as money surrogate
Source: Pixabay

Russian President, Vladimir Putin in his recent press release signaled that regulations for cryptocurrency must be formulated and implemented across the country by July 1st. He has also named the regulatory package as Digital Assets Regulation Bill, which had its appearance last year.

The Finance Ministry announced:

“to legislatively prohibit the use of cryptocurrency as a surrogate for payments in the territory of Russia”

Based on this press release, Russian Ministry of Finance is drafting a law which shall criminalize the use of cryptocurrency as a substitute for money. When the Digital Assets Regulation Bill was passed, the use of cryptocurrency was opposed by the Bank of Russia and the Finance Ministry and also cited that the payments for goods and services shall be done only using Rubles.

The Russian Ministry proposed to criminalize the turnover of money surrogates including cryptocurrencies. This news was officially released by Deputy Finance Minister, Alexei Moiseev during his visit to the conference held by Vnesheconombank.

Alexei Moissev also stated:

“The ministry assumes serious responsibility, right up to criminal ones, for arranging schemes, issuing money substitutes and receiving them…This concerns the payments in cryptocurrency.”

He also added that the responsibility of arranging schemes, issuing substitutes for money and receiving them are upon the ministry which includes the concerns involving payments in cryptocurrency. He also made the fact clear that Money Surrogate Bill is not exclusively for prohibiting cryptocurrencies, rather, it is solely for improving the use of only Russian Ruble for goods and services.

Another supporting fact is the prohibition for Monetary Surrogates.

Though this year seems to have got many positive developments for cryptocurrencies among the policymakers, the Ministry of Finance and the Bank of Russia have never changed their stand on using cryptocurrency as money surrogates. This was evident from the statement made by Deputy FM Alexei Moiseev that ‘everything else other than Ruble is a surrogate’.

He also added that Russia accepts Bitcoin use services instantly to convert cryptocurrencies into Rubles. He confirmed that such operations shall not be closed. The draft has been given such an attention in establishing Ruble as the single legal means of payment in Russia.

The Ministry concluded by stating:

“This is necessary to protect the ruble as the single legal [means of] payment in Russia”

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Santhosh is a full-time reporter at AMBCrypto. He is an engineer with a major in Mathematics and Computer Science. He developed a key interest in the blockchain space and has been studying and researching about it ever since. He is currently authoring a book on Blockchain and its use cases in the Education domain. He currently does not hold any value in any cryptocurrency or its projects.

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Binance Chain’s ‘decentralization’ questioned by Bitcoin enthusiast; calls Binance DEX just an app




Binance Chain's "decentralization" questioned by Bitcoin enthusiast; calls Binance DEX as just an "app"
Source: Unsplash

Udi Wertheimer, an independent developer and a “Bitcoiner” posted a series of tweets taking a jab at Binance Chain, which is slated to launch on April 23.

According to Wertheimer’s tweets, Binance has not updated the “source code” or “binaries” for the Binance Chain; and despite enquiring about it on the official telegram group of Binance, he was offered any source code.

He said that Binance recommended users, who want to migrate tokens to Binance chain, use the official SDK, which will be done via official HTTP API using Binance’s trusted servers. Binance DEX, which will make use of the Binance Chain, also has no source code or binaries which are open source. He stated:

“There’s almost nothing there. So I looked for the source code. Guess what, THERE’S NO SOURCE CODE. They only have binaries, and only for a light client, no full node at all!”

He commented on the Binance Chain and the Dex that all Binance did was release an “app that connects to the API of your new centralized infrastructure”. In addition, the “Light Node” is a program that helps users access and interact with the Binance Chain in a secure and decentralized manner; the source code for which is “closed source” according to Wertheimer.

Wertheimer further added:

“Just releasing the binaries won’t be enough, and there’s no indication I could find anywhere that they intend to release the source code, like, ever. In any case, regardless of what may happen in the future, what’s released so far amounts to nothing more than a new website.”

A Twitter user, @bag_holder commented:

“Lol seems like a very Chinese thing to do. “BORROW” IP, make some edits, then keep it to oneself”

Another Twitter user, @thecryptostefan commented:

“There’s a branch with the full node implementation, no? I thought they just hadn’t merged it to master yet when I was looking last night. I think it’s the prerelease branch or one of those.”

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