- “Founded in 2008 and headquartered in St. Petersburg, Ulmart has over 450 infrastructure facilities including fulfillment centers and pick-up points. The Russian version of Amazon.com is present in more than 240 cities and towns across Russia.”
- “Bitcoin trading in Japanese yen is the second-most liquid market globally, according to data compiled by cryptocurrency trading platform Gatecoin”
- “At the same time, Russia, one of the strongest opponents of bitcoin is seeking to regulate the digital currency”
By Evander Smart Via Bitconnect.co
- “Bitcoin (is) the only technology that has been successfully operating today“. “Bitcoin – the world’s only technology, which is widely used, which has existed for several years, it (has never) broke (once)!
- “Therefore, if we now ask whether there is another algorithm that established the reliability of distributed consensus, then it probably is not. If we talk about the current situation, it is really the only blockchain that we have success, it is Bitcoin,” he added”
- “As a result of this official document, there is no legal prohibition related to Bitcoin or other cryptocurrencies in Russia. Additionally, buying or selling Bitcoin is perfectly legal, albeit considered a foreign currency transaction
- “It is due time some clarification regarding the Bitcoin situation in Russia is provided. No ban on Bitcoin and other currencies is a positive development. Any draft law regarding banning Bitcoin usage has been put on the back burner for the time being. However, new regulations may be written in the coming months”
Via Evander Smart @ Bitconnect.co
[Editors note: The most powerful nations in the world are slowly realising that Bitcoin is more powerful than all of them combined.
In my opinion, the 4 main reasons for nation states not to regulate are the following:
- Risking out on future Industry, Business and Job growth through Regulatory arbitrage.
- Bitcoin could potentially become a strategic asset in the ongoing global currency war.
- Nations are realising more than ever that a politically neutral platform is needed for international settlement.
- For every action there is an equal and opposite reaction and because Bitcoin is a technology that can be incrementally developed, state regulation risk creating a more hostile version of Bitcoin.
As I previously stated in my article ‘China V Bitcoin prices – Why investors should look at the bigger picture’:
“For people currently invested or looking to invest in bitcoin, it is important to remember that Bitcoin is a lot bigger than any one country, even if that country is one of the biggest players on the world stage.”
“It is also worth remembering that bitcoin is a global currency. As such, the opportunity for regulatory arbitrage ensures that there will always likely be a state that recognises the value of Bitcoin and are open and willing to cooperate with Bitcoin entrepreneurs, exchanges and start-ups to help build a robust Bitcoin economy”
“It is these states that will likely force the hand of the more reluctant states in the long term, as they enjoy the competitive advantage that comes from a growing Bitcoin economy that benefits from the use of an efficient, low cost, frictionless transaction network”
We began to see proof of this today when Bank of Russia deputy chairman Georgy Luntovsky indicated a loosening in the central banks stance on Bitcoin and Cryptocurrencies:
“At this stage we need to watch how the situation develops with these kinds of currencies. These instruments should not be rejected,”
Andrey Ostroukh from the WSJ reports:
“Russian authorities have softened their tone on Bitcoin; the central bank now says it won’t hamper the usage of the virtual currency whereas previously it had vowed to crack down on the electronic payment instrument.
The Bank of Russia is now accumulating information about so-called crypto-currencies and is not blocking Bitcoin, the central bank’s first deputy chairman Georgy Luntovsky said Wednesday”
While is waits to be seen if Russian authorities follow through fully on the back of this rhetoric, what is perhaps of significant value here is the speed in which the stance has changed from the beginning of the year.
This may have been contributed to by the rapid speed of developments in the Bitcoin space, especially in regards to its growing legitimacy. We have recently seen the first large and mid-cap companies begin to adopt Bitcoin as a payment method ( DISH, Expedia, Newegg) and many other large cap companies have stated there interest.
In addition to this, recent US sanctions against Russia as well as perceived overreach by a prominent US bank could have possibly been taken as another warning that Russia may need a more diverse set of tools to facilitate international trade in the future. This will only be compounded as the existing global financial system becomes more unstable and trust between major powers (especially the US) continues to deteriorate.
It will be interesting to see in the near future if this reversal in rhetoric from a superpower like Russia, creates further announcements from governments that have so far been more hardline inclined towards Bitcoin and Cryptocurrencies as a whole.