First Criminal Case Opens Up Involving Bitcoin in Russia

Russian Cryptocurrency Sector Reports First Bitcoin Centered Criminal Offence

Bitcoin market have been experiencing a rather tumultuous drive since the last few weeks in Russian periphery following the arrest of three businessmen who were charged for engaging in illegal trading of $9 million worth cryptocurrency or 500 million rubles of Bitcoin. As per reports published on 1^st September by Vedomosti business daily, this is the foremost Bitcoin sales centric criminal case to be registered under Russian court of law.

Russian government has always been adhering to the middle route since the very onset by voicing equal support for both cryptocurrency regulation for curbing the money laundering act and heralding a virtual currency revolution on the wings of state-of-art technology. As per Irina Volk, a press officer associated with Ministry of Internal Affairs, charges of “illegal banking” have been imposed on the trio who cashed Bitcoins worth millions of dollar by taking the illegal route.

Although the name of the convicts have been kept under wraps, the arrest location have been revealed in Kostroma city, which is 260 miles northeast of Moscow. The exchange attracted much attention when investigators smelled unusual occurrences in bank accounts which were stemming from 300 sim cards and bank cards which are usually used for storing the digital currencies. The fund shifting was being carried out in the names of family members as per statement of prosecutors.

Russian courts have previously  blocked Bitcoin websites and exchanges which aided people with transferring it into rubles. But criminal charge was never imposed on the same. Ethereum and Bitcoin have always been used by Russians as means for hiding black money and avoiding tax.

Also Read: Bitcoin Robbery In Uttar Pradesh, India

Cryptocurrencies bring along associated pros and cons. Most of the backbone support technologies as well as the mainframe cryptocurrencies are being designed by Russian brains. Vitalik Buterin who developed the open source Blockchain computing for Ethereum platform was born in the outskirts of Moscow. Russia definitely wants to store such talents rather than lose them out to Silicon Valley. Flying high on the wings of such widespread talent, Russia definitely holds the chance of becoming a premier developer’s hub of Blockchain and Cryptocurrency in days to come but only if the talent is channelized in the right direction.

Also Read: Cryptocurrency As Alternative To National Currencies, To Be Discussed in BRICS

Apart from just developing Blockchain solutions and cryptocurrencies, Russia also wants to become a hub of mining of Bitcoins and other cryptocurrencies. Russia is all set to challenge China in Bitcoin Mining sector.  Russian Electricity companies are providing support to cryptocurrency miners in order to boost”http://kryptomoney.com/latest-bitcoin-news-russia-boosts-bitcoin-mining/” target=”_blank” rel=”noopener noreferrer”> Bitcoin Mining in Russia. 

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