14 DAY TRIAL // The Russian government is looking to recognize bitcoin as a kind of financial instrument sometime next year.
According to Bloomberg, Russian officials, including the Deputy Minister of Finance Alexey Moiseev and representatives from the country's central bank, are developing an official position on bitcoin and other digital currencies as they seek new ways to fight money laundering.
It seems authorities hope to recognize bitcoin and other cryptocurrencies in 2018. "The state needs to know who at every moment of time stands on both sides of the financial claim. If there's a transaction, the people who facilitate it should understand from whom they bought and to whom they were selling, just like with bank operations," Moiseev said in a recent interview.
Bitcoin, as a rule, isn't regulated by any government, mainly because it's pretty much impossible. It has, however, come under scrutiny in several countries due to the fact that it can be used to shelter assets from the authorities or to launder money. In China, one of the largest Bitcoin trading and mining scenes of the last few years, the three largest exchanges recently imposed a moratorium on all coin withdrawals as the central bank issued some new guidelines for them to use.
Therefore, Russia's central bank may soon add a new tool to its arsenal - tracking cryptocurrencies. The Bank of Russia has been trying to fight against money laundering in the past few years, so much that it has seen hundreds of lenders lose their licenses in the last three years alone.
A serious problem
Fake trades and loans have been popping up all across Russia in an effort to move money abroad. The bank's efforts thus far have managed to cut the moved money down to half to $771 million in 2016.
Recognizing cryptocurrencies would give the Bank of Russia the power to take even more control over the issue. It is expected that the authorities will decide if digital currencies can be considered as asset, cash, or security in the next few months.
The plan, it seems, is to allow cryptocurrency purchases through a bank account, thus knowing who has how many coins. Some may also be acquired as a speculative investment.
Bitcoins have grown in popularity in recent years. Since the beginning of 2017, the growth of the cryptocurrency has been formidable, rising to a current value of over $1,215.