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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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GateHub: Stolen XRP funds transferred to prominent exchanges

Namrata Shukla



GateHub stolen XRP funds moved to Bitfinex and OKEx
Source: Pixabay

The GateHub hack that took place earlier this month resulted in the exchange losing nearly 23 million XRP worth approximately $9 million. However, Whale Alert, a tracker of large crypto transactions, alerted the community of these stolen funds being moved to various different exchanges.

One of these exchanges was identified to be Bitfinex, which received 400,025 XRP on June 16 at 10:57:22 UTC. The sender’s address was r4hyDYXv7iV3oCahxQzqYYfgxwyBx3AyMN and was identified to be from the GateHub hack 2019. The receiver’s address was identified to be Bitfinex’s- r9o9MerrS7d2GAEs6JPj4v4JcvZAJNtLUY. The hash rate of the transaction was 21124F7818A2903E9750456D603CC9AACC9DBE6CE2EF0AA191C734339B4CA682 and the transaction details were as follows:

Source: Whale Alert

Source: Whale Alert

Another transaction was noted to take place to the Bitfinex wallet address where 100,000 XRP was transferred from another identified GateHub hack address. The identified Bitfinex’s wallet address was rDcz7P9YMpffLKhRBovTzhUr3wKtk3y9q7. This wallet address was quick to transfer the funds immediately to another exchange, OKEx. OKEx previously received 3,000 XRP from the stolen funds to an identified OKEx address- rUzWJkXyEtT8ekSSxkBYPqCvHpngcy6Fks. The hash rate of the transaction was noted to be BE97F68A20E996A2E1A37228DCBD45A1F26E8E2B3A842E9FCFFF7721157C1C37 and following were the transaction details:

Source: Whale Alert

Source: Whale Alert

The stolen funds were moved to another prominent exchange, Binance, and CZ was swift to inform Whale Alert that he would look into it. However, the crypto users did not find any relief about these funds going to other exchanges as the exchanges did not respond to the large transactions.

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