As we speak Russia is currently in the process of writing a new Bitcoin law.
They are seeking to regulate locally, the trading in Bitcoin as well as all other virtual currencies.
That is a startlingly u-turn from where the country was just a few years ago when they were considering making it illegal to own Bitcoins.
Some details...
The Central Bank of Russia is in the process of preparing legislation focused on regulating and taxing digital currencies.
Nothing is set in stone at this point but reports coming out of the region are saying that the legislation could be introduced as soon as next month and digital currencies could start being regulated as soon as 2018.
The plan is for Russia to officially recognize virtual currencies as digital goods, making them taxable in the same manner. The legislation will also unveil how the government will regulate and monitor the domestic markets.
Why is this startling?
Just a few years ago, in 2014, Russia was strongly considering making it illegal to own or hold bitcoins. The offense was punishable by jail time.
The sudden change of heart comes as the country is finding out what everyone else is finding out, digital currencies are here to stay.
Instead of fighting a losing battle, they have switched sides and decided they better get in front of this thing while they still can.
The increasing popularity of Bitcoin locally and world wide has really forced their hand.
Bitcoin transactions in Rubles:
There has been a pretty strong increase in demand from the region regardless of the government's stance.
What does this all mean for the price of Bitcoin and the altcoins?
That one is a little more murky...
On first glance broader adoption by a country as large as Russia would have to be good news for the entire space. Plus it likely signals that more countries are likely to join the party. Especially if Russia was so against legalizing it just a few short years ago.
However, one thing to keep in mind here is the regulation aspect.
One of the appeals of virtual currencies is their lack of regulation. If Russia shows that they can regulate the markets efficiently and effectively, it could possibly start a trend where other countries go that route as well.
Don't get me wrong, a worldwide regulated currency likely trades much higher than it is currently trading, but it also loses some of it's luster in the eyes of some of it's strongest supporters.
All that being said, lets not forget what Bitcoin has done ever since Japan decided to legalize the currency:
We will see how things eventually unfold, but it seems like this is an important step in eventually getting Bitcoin and cryptocurrencies to be recognized globally as an official means of exchange. Which, in turn, would likely be beneficial to us all.
Now, we just have to figure out how to make sure Steem is one of those that gains a footing as well.
Stay Steeming my friends!
Sources:
http://www.coindesk.com/russias-central-bank-writing-new-bitcoin-law/
https://www.cryptocoinsnews.com/russias-central-bank-could-tax-bitcoin-deem-it-a-digital-commodity/
Image Sources:
https://medium.com/@abarisser/bitcoiners-buying-lunar-real-estate-anticipating-moon-29bbcdf51469
https://news.bitcoin.com/russia-central-bank-proposal-bitcoins-digital-goods/
http://www.zerohedge.com/news/2017-05-20/bitcoin-soars-above-2000-first-time-ever?page=2
Follow me: @jrcornel
Thank you for sharing the good news about Russia here!
Great news comrads! Russia launched Steem-nik for glorious nation Russia! Great crypto race ON! :D
Actually, we have a Голос, our Steem analog in Russia.
And it's hard to get on Steem for us - Steem are blocking Russian cell operators for registration, so we have to use Голоc instead ((
..and what about the freedom of speech?
What is Freedom of speech ? lol that has not been a thing in such along time.
Haha that is awesome. Well done!
why not Golos :D
anyway .. it pays to be first :D
cool!
I hope that STEEM will outweigh the price of the bitcoin
I am not sure that is possible unless Bitcoin falls a lot. It is a matter of supply. Steem has much more supply than Bitcoin. Now I could see a world where Steem trades over $10. Heck, who knows maybe even in the $30-$40 range.
If the price reaches $ 10, it will be overjoyed
Because I really hope so soon to solve my problem with me
I will be overjoyed as well ;)
I wish that my brother
me too
and also will become the new Facebook
This is my first day on here and I can already see this becoming the new Facebook .
Should we expect the US to ban bitcoin now that Russia seems to be opening up to them? jk
Haha I doubt it. I bet the US follows suit at some point down the road... they will be forced to when the rest of the world is transacting in it. They are not in a hurry to lose their world's reserve currency status though.
Yeah it's not going to happen! I think it'll be sooner rather than later as every delay hurts. I wonder how much of a threat they view cryptos to the dollar reigning supreme.
bitcoin is unstoppable
the Chinese tried to stop it and couldn't
they can close the exchanges and it will be more difficult to buy bitcoins but once you have bitcoins - you have it and no one can stop it or confiscate it. (if you have the privet key) :)
it just might . : )
It's interesting that in the end we will essentially need "regulation" for wide adoption of crypto currencies, while the crypto purists are against any kind of censorship, which regulation essential is.
The $1,000 question is how do we get mass adoption (and being feeling safe) without censorship.
Quandary indeed :-)
Personally I don't think it's possible. The governments aren't going anywhere. However, I think they can only regulate certain portions of it. For example they may be able to tax and trace transactions but they can't change the supply of coins in circulation without completely taking control of it.
That is true and controlling circulation is a huge factor with the USD, print print print to solve problems. Won't have that luxury with coins.
Exactly. So, a little regulation might actually be a good thing, no matter how much the purists will hate it. It will give a lot more confidence to mom and pop looking to get involved.
Recent uptrend is just in part due to japan right? Also, i think if russia manages to regulate people will switch to Zcash or other fully anonymous Crypto's, right?
Of course, but governments are gonna do what governments do right up to the bitter end.
Yes it is in part due to Japan, a pretty big part though if you ask me. The Yen had been dominating the trading volume for weeks during it's surge. South Korea has recently been a big player as well. Basically several parts of Asia have been responsible for most of the surge in my opinion.
Thank you for taking the time to answer @jrcornel!
Also, if you'd permit me a minnow question; how does one get to know these things? I read coindesk everyday and allways follow Steemit posts about Crypto but don't seem to become much wiser on the area of causes of surges or drops in $.
Keep reading! Google bitcoin and cryptocurrency and read all the latest news stories each day. You will find yourself getting "smarter" in no time. Also, regarding those trading numbers you can look up Bitcoin volume in fiat terms on an exchange and get an idea of who is doing the buying and selling.
If you scroll down to a couple of my posts from a few weeks ago. I posted a couple images that showed the Bitcoin volume in Yen and KRW.
A possible regulation on the part of Russia would be good because the adoption would be in mass, and the prices would go in the heights.
Those are my thoughts as well. The benefits would significantly outweigh the negatives.
The Russians are intelligent, but I will not know if they try to tax the bitcoin, something that can not be controlled by its essence.
Great post @jcornel I hope steem can become a FB type of status one day and it does become one of the Crypto currencies used in the future.
So there is two of us?! :)
Ha yes there is, at least- right?!?!?
Thanks for the update @jrcornel.
I think the Russians have finally realized there is no stopping Bitcoin, so Bitcoin will most likely be legal and the regulation will most probably be implemented.
Yep, I think so as well.
If things keep going the way they are, Russia recognizes and taxes crypto and the US outlaws and confiscates them.
Haha! I sincerely hope that isn't the case. I don't think the US will have much choice if they keep waiting. They will be forced to accept it as a currency as the rest of the world will already be transacting in it!
Yeah but their pattern has been to force US law on everyone else like they did to BNP.
Thank you, this could be very interesting. I have no Bitcoin but enjoy watching its ups and downs, its growth.
Hopefully it drags all the others up with it... Or (and this would be even better), Steem finally gets noticed for the superior technology it posses and starts to take it's place as one of the top cryptocurrencies.
Go Russia.....wondering when my country will get here🤔
Where is your country?
Far away Nigeria, West Africa......
🙄🙂.....yeah i know, we are still far behind.
Regulating it how? I thought that was the whole idea of crypto currency was that the people who were buying it because a fiat system like all monetary systems through out history have failed. Greed in government and that top 1% that control the strings of the puppet politicians have always stole the wealth from the people.
Seems like so much to just grasp on this bitcoin and alt coins...
Here I'm trying learn more and more and it just amazes me how many people don't even know what bitcoin is.
Way to go Russia.
"You can do it!"
Very informative post of great interest my friend @jrcornel and the big question will be, once there is a tax on what is essentially a token, data header, a number that is a transaction mechanism for internet exchange, what's next? Great post
@jrcornel Thank You Very much for creating this post... there is much to consider & ponder by these moves to regulate Bitcoin by Russia & Japan.
UpVoted, Following for 8 days & will be Resteeming.
I'm 15 days new and still climbing the "learning curves" both here at Steemit & the rapid changing financial "landscape" of the cryptocurrency world & the global markets/exchanges.
I'm no expert but think that by Russia specifically calling Bitcoin a "product or commodity" is a very interesting approach regarding regulation because as I understand things, it's not common place to "tax" or charge a fee on a currency/money.
I believe this is one of the reasons the United States Federal Government has been extremely slow to take any overt/direct actions regarding Bitcoin regulation, although I believe there most likely have been covert involvement/activities done by certain 3 letter agencies ( plausible deniability ) to undermine Bitcoin & other alt coins.
I'd be very curious of your personal thoughts & opinions (( or anyone's thoughts reading this reply )) on the benefits/disadvantages of regulating Bitcoin as a product/commodity vs regulating Bitcoin as a currency/money.
Thank You Again for Your comments... Have a Great Week !!
This is very interesting development in deed! Thanks for sharing, this will give the crypto world wider wings to fly with. Namaste :)
I'm living in Russia, an I'm afraid of bitcoin regulation even more than a bitcoin prohibition. There are some CRAZY laws issued lately by our parlament госдума. So will see HOW they will regulate it.
Good post!.I'm from Russia. Than just not scary ...and jail sentences for up to 7 years and confiscation of all movable and immovable), and disabling the Internet and much, much more likely. But You correctly noticed that the country at us big. Not all jail - prison is not enough. Bans will not work. It's like a drug. Everyone who got hooked on crypto currencies, he does not want to resign voluntarily. And about steemit to say ...it will be a bombshell. As soon as it will be wide spread as soon as more and more people begin to understand that behind all these is a great new future. This will change absolute all.
cryptos are taken over the world
That is very good news, just think what will happen to Bitcoin price when 0.5% or the Russians will decide to buy one Biycoin
very good news, thanks for sharing
go russia
What did I tell you guys. Governments will not be able to resist cooperative agorism. The evolution of blockchain technology and organisational structures will force them to adapt to their new market: The culture its citizens create, promote and live in.
Don't like it? Ban it.
Can't ban it? Tax it.
Can't tax it? Make it integral to something you can tax.
Still can't get people to give you their money? Change the type of services you provide and how.
Bitcoin to the moon! Once it hit the mainstream.
Great post! I'm new to bitcoin and am just hoping to get some before it hits the moon...
I believe Russia sees this as an opportunity to get the rest of the world weaned off the US petrodollar, which has been a huge bargaining chip for the U.S. for decades.
agreed
nice....you deserve resteem and upvote...
look up to waves platform the next big thing after ethereum maybe as both are from russia and both developers know each other, check up my blog for further high value infos which can be lifechanging.
Informative. I personally do not like the idea of any central bank regulating bitcoin making it legal and recognizing it is one thing but overseeing it and manipulating it like the central banks do with other currency is another. I read the article thanks for sharing your perspective and starting this discussion. Steem on!
one event is missing in your second chart: "BearWhale went crazy" :DD I think I can see that in that small jpeg :)
So the Russian government will tax Bitcoin at the point that it is converted into rubles? Like income tax or capital gains? Like it was a foreign currency.? Then we can expect something like this is on the horizon in the US. But Bitcoin can be used in the marketplace with merchants who accept it without ever converting it. That will have to be increased to keep the government from dipping into the till. the more they chase Bitcoin the worse they will make it for themselves. Like trying to smash mercury.
No. I believe they will try to tax each transaction itself.
Way to go Russia.
USA holding onto their $ for dear life like..
Good post. Did anyone else have the MTV commercial music start playing in their head when they saw the picture? Pavlovian!
This is such great news! Especially if they were planning to make it illegal only 2-3 years ago! Yeah for Russia! I bet (and hope) more countries will follow the example of countries like Russia and Japan!
Probably will #WAVES profit the most if this is happening. So maybe a good investment opportunity.
Nice post. That will be huge if Russia joins.
I think it's good for the crypto world. Me, I like bitcoin and all. But Steem has my interest for sure.
As a citizen of this country, I can say that this situation does not look so good. Unfortunately we have very weak law Institute. 90% of laws are aimed at making a profit... to formally increase the budget, in fact- get into the pockets of certain people.
The laws do not take into account the interests of all market players, which leads to deterioration in the overall situation.
Of course this situation will have a positive impact on the world market of bitcoin. But locally, the majority of bitcoin holders in Russia will go underground.
For example, the basis of this law is the term that bitcoin is not a currency, it is a product/item. No one here (at the state level) doesn't want to delve into the intricacies of the technology of the blockchain. In the end we get a law that will regulate only the purchase and sale of cryptocurrencies, the state just will get % for fictitious market regulation.
@natord & @jrcornel I'm no expert but think that Russia specifically is calling Bitcoin a "product or commodity" is a very interesting approach regarding regulation because as I understand things, it's not common place to "tax" or charge a fee on a currency.
I believe this is one of the reasons the USA has been slow to take any overt/direct actions regarding Bitcoin regulation, although I believe there most likely have been covert involvement/activities done by certain 3 letter agencies ( plausible deniability ) to undermine Bitcoin & other alt coins.
I'd be very curious of your personal thoughts & opinions on the benefits/disadvantages of regulating Bitcoin as a product/commodity vs regulating Bitcoin as a currency...
Thank You Again for Your comments... Have a Great Week !!
Excellent article! Thanks for keeping us up to date.
This is great not only for bitcoin but steem as well
Hi following you. Good post! Russia will definitely be a big boost to crypto. I think Waves will get a massive boost since it is one of the most favored cryptos in Russia. Follow me if you like
Upvoted and thank you for sharing.
This has got to be the beginning of the end of BTC and other alt coins no? Once "regulated" they will also allow and accept payment of your income taxes and any other forced tax to take place using BTC and any other alt coin they wish to bring under their control. Once taxes begin to be paid via this medium, government entities could simply "hoard" the windfall and not spend it back into the productive economy. This would be the new "gold" confiscation of our time. Just thinking things out loud. Thoughts?
GOOD NEWS EVERYONE..... (Futurama)
Great analysis. Good times ahead.
YAY This is awesome to hear . : ) Thank you for sharing ... Well done ..
It is a good move that Russia is standing down on its initial ideology of cracking down on cryptos especially bitcoin.
I see America still divided on how to go about cryptos, while the intelligence community are still weighing all the cards on the table, the America masses seems to go with the cryptos.
For steem it has great potentials and would keep its rank among the best and because of its structures would rank among the best three crypto from my own research and analysis.
But I believe it will keep standing out eventually.
Guys spreed the news.
steemite to tell the world, this is new, this is cool, this is innovative, get the crowd on board...
IMO its not just about 'regulation' of the crypto, its more like a way to get more taxes into state budget. However tax rates in Russia are relatively smaller than in US/EU.
Anyway its a huge step ahead for everyone