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Cryptocurrency? It looks like something out of science fiction, right? But in reality, cryptocurrencies are a modern phenomenon of the exchange of goods and services. In fact, this is not only fundamentally changing the tech and coding industry, but it has a huge impact on how countries around the world imagine currency.
Cryptocurrency is, by definition, a form of payment. But not everything is so simple. What sets it apart from the currency used in everyday life is that cryptocurrency often exists within a specific ecosystem.
But what really makes cryptocurrency such a destructive force is its inclusion in our digital world. The number of cryptocurrencies continues to grow and there are no signs of slowing down.
In 2008 Nakamoto published a widely circulated white paper on the potential of cryptocurrency and conducted the first transaction with the most famous cryptocurrency to date: Bitcoin.
The legal status of bitcoin and related crypto instruments varies significantly from country to country and is still not defined or is changing in many of them. Although most countries do not recognize the illegal use of bitcoins, their status as money or as a commodity varies with various regulatory implications.
Cryptocurrency status in Russia
According to the Federal Tax Service of Russia, as of November 2016, bitcoins “were not illegal.” However, Deputy Finance Minister of the Russian Federation Alexei Moiseev said in September 2017 that accepting payments in cryptocurrency is “probably illegal”. Bitcoin market sites were blocked, and court decisions said that Bitcoin is a surrogate currency that is banned in the Russian Federation.
From the point of view of the current Russian legislation, cryptocurrency is a monetary substitute. According to article 27 of the Federal Law “On the Central Bank of the Russian Federation”, the issuance of monetary surrogates in the Russian Federation is prohibited.
Central Bank of Russia and Rosfinmonitoring in their information messages have repeatedly warned the citizens of Russia that all operations with cryptocurrency are speculative and carry a high risk of loss of value.
The Central Bank of Russia states that:
“Most operations with cryptocurrencies are carried out outside the legal regulation both in the Russian Federation and in most other states. Cryptocurrencies are not guaranteed or provided by the Bank of Russia. ”
The bill on digital financial assets was introduced to the State Duma on March 20, 2018. It defines cryptocurrency mining as “an activity aimed at creating a cryptocurrency in order to obtain compensation in the form of a cryptocurrency” and is considered “an entrepreneurial activity subject to taxation if mining exceeds the energy consumption limit set by the government for three consecutive months.”
In the bill, bitcoins are classified as property and are not considered legal tender. Exchange of cryptocurrency for rubles and foreign currency is allowed, but only through licensed operators.
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