Russia wants to label Bitcoin as foreign currency

Depending on how soon all involved parties can come to an agreement, the law proposal will be submitted to the Duma by the end of 2016.

Russia.- The status of Bitcoin in Russia has been up in the air for quite some time now. First they wanted to ban bitcoin. Now, Russian authorities are considering a new option for the digital currency’s status in the country: label it as foreign currency.

The government wants to equate digital currencies like Bitcoin to foreign currency: this means that the use of bitcoins in the country would still be prohibited, but users can buy the virtual currency through exchange platforms and spend it in other countries.

Deputy Finance Minister Alexey Moiseev said that the government is still push for the bill that will punish those who use cryptocurrencies like Bitcoin in Russia: “According to the Constitution, the only ruble issuer in the country is the Bank of Russia. Thus, issuing any other currency is illegal. The bill we are now refining specific language to allow this kind of purchases with a view to their use outside of Russia.”

Depending on how soon all involved parties can come to an agreement, the law proposal will be submitted to the Duma by the end of 2016. Once that step has been completed,  it will take several more weeks, or months, until the proposal is accepted or declined.