Russia Might Become a Bitcoin and Crypto Mining Power House? Are Sanctions Brewing?

Swagtoshi shared: BREAKING: If reports are to be believed, Russia is planning to recognize cryptocurrencies as currencies. It’s incredibly bullish news. I delved a little deeper. Here’s what we know right now.

The report circulating on Twitter is sourced from the Kommersant newspaper. According to Wikipedia, Kommersant is a nationally distributed Russian paper with a daily circulation of 100000+ in 2013. It is devoted to covering politics and business. So, it is legit.

Here are the most important parts of the report. “The government and the Bank of Russia have agreed on a future regime for the circulation of cryptocurrencies in Russia: By February 18, they will prepare a draft law on the circulation of digital currencies in the Russian Federation, in which cryptocurrencies are recognized as an analog of currencies, and not digital financial assets (DFA).”

Their circulation in the legal sector will be possible only with full identification, through the banking system or licensed intermediaries fines will be introduced for the illegal acceptance of cryptocurrencies as a means of payment.” This implies that crypto will be a legal means of payment in Russia. And illegal acceptance will invite legal action evasion of declaring transactions with cryptocurrency will become a criminal offense, and its use will become an aggravating circumstance in other offenses.

The possession of cryptocurrency in the jurisdiction of the Russian Federation and transactions with it are not prohibited – but only through the “organizer of the digital currency exchange system” (a bank with a universal license) or a p2p exchanger legalized in the Russian Federation.” “So far, the most intriguing is the organization of the legalization of the existing undeclared cryptocurrency, which is not described in the concept.

The Ministry of Finance’s estimate of the total amount of crypto assets in the Russian Federation has not changed – it is 12 million crypto wallets with assets worth 2 trillion Rubles.  This is equivalent to around 26,711,184,000 USD.

Previously, The Bank of Russia had expressed its disapproval of cryptocurrencies and called for an outright ban. However, Vladimir Putin then went on record to outline Russia’s advantages in Bitcoin mining.

Putin is the indisputable ruler of Russia. His opinion could have been expected to prevail. It seems like it did. NATO and the US have been mulling over sanctions on Russia over their militaristic overtures in Ukraine.

There were talks of plans to remove Russia from the SWIFT payment system. So Putin could be looking for a way to sidestep the dollar and the conventional payment system. What better than Bitcoin!

Consider Russia’s massive oil and gas reserves, among other natural resources, and you have the perfect recipe for a Bitcoin mining powerhouse. The Kommersant report says that decisions are still to be made on the subject of mining. Let’s wait and watch.

Now we wait for further corroboration from other news sources about this exceedingly bullish news. Few would have actually expected a country as powerful as Russia to come on-board the Bitcoin wagon so early. Even though it makes all the sense in the world.

Game theory is working. Russia may be going all in. Your move, US.

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“Such platforms should be “technically integrated” with the banks that serve as organizers of the systems of digital exchange. Those registered in tax havens will be disqualified from operating in the country altogether.”

UPDATE: The great Bitcoin maximalist, Max Keiser’s new tweet indicates something big brewing in Russia on the mining front. Let’s wait and watch.