Russian Bitcoin Trade Restricted to “Qualified Investors”

Published Tuesday, November 14, 2017 -
Russian Bitcoin Trade Restricted to “Qualified Investors”

Crypto currencies or virtual money such as Bitcoin available in some jurisdictions has created a method that online gamblers use as an alternative to their traditional banking needs. The Bitcoin surges and dips in value have prompted some jurisdictions to take a second look at the virtual coin’s validity and are making moves to outlaw or curtial its use.

Russian investors for example are being told that investing in the alternative funding method is not for novice investors and should be avoided. While speaking to a group of young pioneers at the World Festival of Youth and Students in Sochi Russia, Economic Development Minister Maksim Oreshkin told the audience that it was his opinion that Bitcoin investment is “worse than casinos,” as the unwary can follow initial gains with catastrophic losses and “be left with nothing.”

The official stance is echoed by Minister Oreshkin who agrees with President Vladimir Putin’s decision to “protect” Russian citizens from potentially volatile crypto currencies by placing a country wide prohibition on web domains that offer them. Oreshkin said that investments with unpredictable characteristics should not be made accessible to novice or everyday investors.

Russia’s position on online gambling is it is prohibited and President Putin has suggested that virtual money systems could be used for money laundering by organized crime. There is also the possibility that Russian punters will engage in online gambling casinos and use crypto currencies to do so. Many Russian citizens are tempted to play at online casinos from offshore sources which have become more difficult recently due to increased government intervention.

The decision to try to curtail investment in virtual currencies such as Bitcoin is not a blanket one with “qualified investors” still being allowed to access these money markets. Investors of this caliber are those who have at least RUB 6 million (approximately $100,000 USD) in their current account and they make a minimum 40 transactions per year that turn over at least RUB 6 million.


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