Russia opens 1st criminal case with Bitcoin

Final week, three businessmen were detain by Russian police for an illegal trading in 500 million rubles of bitcoin. In Russia, the mark of the arrest starts the first ever criminal case against Bitcoin sales. The government enacting to show that cryptocurrencies will not be tolerated as a money laundering unit. Besides, they want to show that they accept bitcoin and other technologies. Sometimes, it seems to be a risk losing out on major, life changing, global opportunities ahead.

According to ministry of Internal Affairs press officer, the Irina Volk the 3 defendants illegitimately cash the million in bitcoin are being brought up on charges of “Illegal Banking”. Their names were obscures. Approximately, arrest were 260 miles northeast of Moscow in the city of Kostroma. Th money was being shifts into different accounts ownes by prosecutors believe.

Previously, Russian courts have blocked bitcoin exchanges and website where people could transfer into rubles. Though, they never brought anyone on criminal charges for doing so. Bitcoin is a Russia’s No.2 cryptocurrency, Ether is the way for Russians to avoid taxes and hide cash from all gains.

Also Read: Russia’s Central Depository aims to develop its own cryptocurrency wallet

With the fact that around 300 bank and sim cards were uses in this transaction indicates on the part of authorities that there was something fishy about the transactions. A working group of assessing the risks of exchange are being discusses in the Russian parliament.

Cryptocurrencies represent a challenges as well as opportunities for Russia. With the fact, that most  of big cryptocurrency and their backbone support technologies are being design by Russian. Vitalik Buterin, the man who found Ethereum’s open source blockchain computing platform and the ether. Russia insists more on Vitalik’s develop these new technologies in Russia. It has a chance to become a blockchain cryptocurrency developer’s hub because it has brain power and the talent to do so. The public policy is only just starting to catch wind of this.

Chairman of the executive board at the National Settlement Depositary of the MOEX, Eddie Astanin said,

“The platform will not only provide technological and legal protection of all parties involved, but will increase the variety of post-trade services for investors, custodians and new institutions emerging in this sector of the economy”.

In Russia, a legal framework for Bitcoin in still being formulated by the country’s financial authorities and different central.  But, there is no concrete regulatory proposals of definitively authorizing the transfer of bitcoin into rules. Russia has a keen as showing it can bust money launderers as it is showing that it’s a player in the new digital economy.

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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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