Friday, February 07, 2014

Russia Follows China, Bans Bitcoins

Russia has banned digital currency Bitcoin under existing laws and dubbed use of the crypto-currency as "suspicious".

The Central Bank of Russia considers Bitcoin as a form of "money substitute" or "money surrogate" which is restricted under Russian law. However, unlike use of restricted foreign currencies, Bitcoin has been outright banned.

Reports claim some Bitcoin exchanges in the country have shut doors following the announcement overnight by the General Prosecutor of the Russian Federation.

The announcement relates to transactions of Bitcoins, but the legality of owning the currency is currently unclear.

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