Internet, Technology

Russian authorities make Bitcoin illegal

BTCWhile Indian authorities are still unclear on their stand on virtual currencies, Russia has declared Bitcoin to be illegal, reports Reuters. In the last few months, other nations, namely China, Canada, Norway, Iceland and Thailand have banned this other digital currencies.

Similar to the warning issued by RBI in India, Russian authorities have stated that cryptocurrencies can be used for money laundering, financing criminal activities etc. As a conclusion, the warning refers treating Bitcoin as a parallel currency to Rouble, illegal.

“Systems for anonymous payments and cyber currencies that have gained considerable circulation – including the most well-known, Bitcoin – are money substitutes and cannot be used by individuals or legal entities,” said the Russian Prosecutor General’s Office.

Following successive bans across countries the value of Bitcoin fell from USD 1200 in December 2013 to USD 615 at the time of writing.

Although in US the virtual currencies are picking up a pace with big eComm players like Overstock accepting it. In India, the traders still seek clarity from RBI on whether or not it is legal to deal in digital currencies. Assuming this trend continues, where big countries like Russia, China, Canada etc. go on banning the use of Bitcoin, it is highly likely for its value to fall further, and the predictions which state it to be the next big thing in the field of technology and online startups will get proved to be incorrect.

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