Senator says Russia should regulate bitcoin turnover, not ban

MOSCOW, Jan 15 (PRIME) -- Expansion of cryptocurrencies in Russia is unavoidable, and they should be regulated, not prohibited, Lyudmila Bokova, deputy chairperson of the constitution committee of the Federation Council, the parliament’s upper house, said late Thursday.

“The process of introduction of cryptocurrencies is on its way all around the globe, and its appearance in Russia is inevitable. It would be unwise to reject its use. However, it’s important to control the process; we should create a clear legal regulation of all matters related to issuance and turnover of cryptocurrencies,” Bokova said.

Head of the Investigative Committee Alexander Bastrykin said Thursday that the government can introduce criminal responsibility for issuance and turnover of money surrogates due to a recent expansion of virtual cryptocurrencies, among which the bitcoin is the most popular, he said.

“Control should not always start with criminal responsibility,” Bokova said. Many countries use bitcoins as a means of payment and a stock exchange item, she said.

Sergei Ryabukhin, head of the budget committee of the Federation Council, said late Thursday that Russia should not ban bitcoins. “Criminal responsibility for its unmonitored turnover without the central bank’s permit is mandatory,” he said.

The government said at the end of 2015 that it will elaborate a legal base to regulate blockchain, a database of the bitcoin protocol that keeps record of all transactions made with the cryptocurrency, by January 2017.

Domestic payment system operator Qiwi said earlier that it would start emitting its own virtual currency, called “bitrubles,” in 2016 on the basis of the bitcoin technology.

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