Prosecutor General's Office warns that crypto currency is not in conformity with the Federal Law
On Friday, February 7, at the meeting of the General Prosecutor of the Russian Federation, it was decided to prohibit the use of virtual currency Bitcoin and other electronic money in Russia.
The participants stressed that, under federal law, the official currency of Russia is the ruble. Putting into circulation other currencies or virtual currency is prohibited. The government called crypto currency including Bitcoin to be money substitutes that are not acceptable for use by individuals and legal entities.
The main disadvantage of virtual currency is that it is not backed up with real value. Bitcoin exchange rate is determined only by speculation in the foreign exchange market, making it difficult to predict its value and risk assessment of operations conducted with the participation of the currency.
In addition, Bitcoin is the currency that is not subject to any bank in the world. When paying with crypto currency one is kept anonymous - the seller and the buyer. This makes it possible to transform illegally earned money into cash. Also, today in Russia and other countries, there are no institutions that deal with protection of the owners of the currency. Thus, it is impossible to protect the victims of agreements in crypto currency.
Bitcoin is used by a wide audience from 2009. To date, the network of crypto currency is about 12 million. In January 2014 one Bitcoin was worth $915.
