The legality of Bitcoin in other countries is a myth

As the world’s largest country prepares to introduce the harmful effects of using Bitcoin, Russian presidential adviser, German Klimenko, has once again lashed out against cryptocurrencies, saying that the legality of cryptocurrencies in several countries is a fiction.

Bitcoin’s legitimacy is a ‘myth’

Klimenko spoke to Russian news service Rusnovosti about what Duma (Russian parliament) member Dmitry Marinichev said — that banning cryptocurrencies “would be the worst thing that could be done.” Marinchev was also quoted as saying, “We will work on creating laws for Russian cyberspace, promoting infrastructure development and welcoming brilliant minds from around the world.”

Klimenko responded that while he and Marinchev have a “good relationship,” he holds a different view on cryptocurrencies. His full response is here (translated from Russian):

“I’m sorry but cryptocurrencies are currently an illegal means of payment in every country in the world; all myths of legitimacy are fiction. There is a lack of trust in the people who created Bitcoin and the term cryptocurrency, and the cultural virus has infected the mind.”

Klimenko is a well-known cryptocurrency opponent, having told Lenta.ru that “accepting Bitcoin as payment for anything is unacceptable because it is a crime,” adding that “using this uncontrollable currency is always a blow to the economy.”

The advisor seemed to be unaware of the situation, however, in some countries where Bitcoin is not illegal such as the United States, Australia, and especially Germany, it is already considered legal tender in far more countries than where it is completely banned (Ecuador, Bolivia), de facto illegal (Iceland), or restricted (China).

Russian officials divided

At the same time, Russia is also considered a country that is unfriendly to cryptocurrencies. The divisions among Russian officials have made the "Bitcoin ban" the reason why it has not been implemented after being called for for several years.

Russia’s financial sector and the Bank of Russia have taken very different approaches to cryptocurrencies, with the former advocating for harsh penalties and the latter being more open to research into Bitcoin’s underlying technology. Moreover, the country’s largest bank also appears to be moving towards being more open to blockchain research, announcing its intention to join the R3 consortium last December.

However, the bill against Bitcoin will finally become law in August 2016. According to reports, those who trade and mine Bitcoin may be sentenced to up to seven years in prison and a fine of 30,000 to 50,000 rubles (about 58,000 US dollars).