Russia recently announced its plans to assign a legal status to Bitcoin. While the cryptocurrency community rejoiced about the new developments, it is too soon to break out the champagne as Bitcoin mining can still be considered as a criminal offense, attracting jail time. Many people became aware of the scenario after the head of Russian Central Bankâs cryptocurrency working group explained about it during a recent speech.
According to one of the Russian cryptocurrency news outlets, Central Bankâs Elina Sidorenko, while speaking at the Blockchain & Bitcoin Conference Russia clarified that the country is currently working on creating cryptocurrency friendly regulations, which will also be applicable cryptocurrency mining activities. Meanwhile, Bitcoin mining continues to be perfectly legal, but the same canât be said about selling the mined Bitcoin.
Sidorenko explained that mining Bitcoin while paying for any incurred overhead charges in legal, as the miner would be utilizing the resources for which he/she has paid for. But if a miner tries to sell the bitcoins earned during the process of mining, he/she will end up violating multiple laws. In order to sell the âlegally minedâ Bitcoin, a miner will have to create a company with relevant exchange licenses, which is, unfortunately, impossible in accordance with the existing corporate laws.
The publication quotes Sidorenko comparing mining with general habits and other activities by saying,
âYou may brush your teeth, do pushups, or not brush your teeth but tell everyone you do. As long as you donât sell your clean teeth and donât sell the mined money itâs totally up to you. As long as you donât import products into the exchange zones or the economy, youâre as clean as a whistle. They ask us what weâre going to do with companies that mine money. The answer is simple: the same what we do with companies knitting socks.â
By legalizing Bitcoin, Russia intends to put an end to potential money laundering activities involving cryptocurrencies. It will also enable the country to include virtual currencies in the tax net, generating more revenue for the government.
In the coming days, Russians can expect changes in the countryâs corporate, tax and finance-related laws to facilitate the inclusion of cryptocurrencies as recognized currencies in the region. Whether the minersâ find a solution for their predicament in these new laws, is something that has to be seen in the future.
PlexCoin Founder Gets Jail Time, Fine on Contempt Charge
U.S. and Canadian authorities appear determined to make an example of a recent initial coin offering.
On Friday, a Canadian court ordered a two-month jail sentence against PlexCoin creator Dominic
'Bitcoin Jesus' is 'really, really concerned' about the future of the digital currency
An early bitcoin investor said Monday the digital currency can run higher, but the hype has far outpaced its usability. "I think in the short run it can run up a lot more," Roger Ver, CEO of
Bitcoin has aspects of a bubble, but it's OK to 'play' with it: Economist Robert Shiller
Bitcoin has "aspects of a bubble" but it's almost impossible to know whether it's gone too far, Nobel-winning economist Robert Shiller told CNBC on Monday. Bitcoin has been on a wild ride
Futures Launch Puts Record Bitcoin Highs Back in Play – Yahoo Finance
Digital currency bitcoin begins trading on major exchange for first time in Chicago WLS-TVBitcoin Futures Started So Hot That Trading Had to Be Halted Twice FortuneBusiness Insider Â âCNNMoney Â â
Understanding Futures: A Primer for Bitcoiners
Lanre Sarumi is the CEO of Level Trading Field, an interactive online platform for professionals in the finance industry.
"Study the past if you would define the future." – Confucius
Bitcoin Price Back Above $17k to Set New All-Time High
The price of bitcoin has pushed back above $17,000, hitting a new all-time high on CoinDesk's Bitcoin Price Index (BPI).
As of press time, the BPI had climbed as high as $17,382.64, beating the $17
People are taking out mortgages to buy bitcoin, says securities regulator
Bitcoin is in the "mania" phase, with some people even borrowing money to get in on the action, securities regulator Joseph Borg told CNBC on Monday. "We've seen mortgages being taken out to buy
Two Firms File Bitcoin ETF Applications in Wake of CBOE Futures Launch
Two exchange-traded fund (ETF) providers have filed with the U.S. Securities and Exchange Commission (SEC) to create Bitcoin ETF products that trade in cryptocurrency derivatives.
According to the