Russian Online Gambling With Bitcoin Still Prohibited

Published Friday, December 02, 2016 -
Russian Online Gambling With Bitcoin Still Prohibited

The use of Bitcoin and other virtual currencies for online gambling has been a great boon for those who would rather keep their financial cards close to the chest. Unfortunately governments all over the planet are trying to put a lid on the use by requiring participants in the system to report any gains and pay the  taxes.

Russian has recently published the official status of Bitcoin and other virtual currencies determining them to be a foreign currency and since trading involving digital currencies are to be considered foreign currency transactions, it means that transfers will not be subjected to financial reporting according to the Russian-language media source Interfax.

The Ministry of Finance for the Russian Federations has been opposing the use of digital currencies in Russia and it even developed a strategy to prohibit crypto currency trade and mining activities. The Ministry of Finance was seeking a four-year prison sentence and maximum penalty of 4,000 rubies for those Russians caught using digital currencies, while Bitcoin traders and miners would be given prison sentences of  up to six years and be required to pay a penalty of 1 million rubies  the equivalent of their salaries for a period of two to four years. However the approach met strong opposition in the Russian parliament and officials now have a different view regarding the virtual currencies.  Russia’s government officials have decided that it is necessary “to monitor the use of virtual currencies and analysis of risks of use of money surrogates for criminal activities.”

The legal use of Bitcoin for online gambling in Russia is such that Bitcoin casinos and other Bitcoin gambling websites are just as illegal as all other online gambling operations. Players face minor financial penalties if caught gambling online in Bitcoins or other currencies. The laws are very difficult to enforce on the level of an individual player and so far there have been no reports of players being prosecuted for online gambling.

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