Cryptocurrencies like bo3 cryptokey glitch are gaining popularity and the global market cap is touching a $100 billion milestone. Russia, however, is not happy about this meteoric rise in popularity of cryptocurrencies and has announced a cryptocurrency ban. We look at six bizarre crypto related facts about the Russian crypto ban that you need to know about.

1. Cryptocurrencies are not illegal in Russia but issuing them is illegal

There are no specific laws regulating cryptocurrencies in Russia and it is not illegal to use, possess or switch on a bitcoin wallet. However, doing so can be punished under various laws, including money laundering and tax evasion. The ban came into effect as of January 1 and will apply to both state-owned and private companies. The Ministry of Finance has already issued a draft bill that seeks to ban the issuance of cryptocurrencies in Russia.

2. Crypto exchanges will have to register with the government

Exchanges that buy or sell cryptocurrencies for a profit must register with the government within the next three months or face losing their licenses.

3. All crypto-related websites will have to register with the government

Any website that has information about cryptocurrencies, including their history and current value, will have to register with the government and block access from any Russian IP address.

4. Crypto mining is still legal in Russia

Any individual or organization can mine cryptocurrency in Russia legally as long as they declare their earnings and pay taxes on them. Mining used to be done at home on a single PC but this has changed with new crypto mining graphics cards being designed by companies like AMD. Nowadays, crypto mining is often done by large companies that run huge server farms to mine cryptocurrencies like bitcoin and its variants such as litecoin.

5. Exchanges and exchanges will have to educate individuals on cryptocurrencies

The draft bill also includes a requirement that exchanges must develop and implement a “system for informing citizens about risks related to using cryptocurrencies.”

6. Trading in cryptocurrency is not illegal but mining is

Russia has also moved to ban websites that publish information about how to mine cryptocurrencies. The government has banned the use of any software with the capacity to generate new units of cryptocurrency, including code that aids miners in performing calculations. It is believed that this crypto mining ban will lead to a rise in the cost of producing new bitcoin as well as other digital currencies.

7. Mining crypto amounts to tax evasion and money laundering

The Russian government has also announced that individuals who mine or deal in cryptocurrencies are subject to the same restrictions as individuals who engage in money laundering and tax evasion, according to a copy of the draft bill. Individuals may be fined a maximum of five million rubles (about $83,000) or imprisoned for up to 15 years if convicted for these crimes. 

8. Officially banned in Russia

The Russian government has officially banned the use of all cryptocurrency in the country. After a meeting with Russian president Vladimir Putin, the Minister of Finance Anton Siluanov confirmed that “the state certainly sees it as an unpleasant phenomenon.” The ban came into effect as of January 1 and will apply to both state-owned and private companies.

9. Government has no plans to ban Bitcoin

The Russian government has no plans for banning Bitcoin despite several other countries doing so. In fact, President Vladimir Putin is said to be an avid follower of Bitcoin news, according to a recent report by RT News. He is said to have even invested in Bitcoin (BTC) during the fall of 2016 and is bullish on the future of cryptocurrencies.

10. Russia still sees a future for Bitcoin

While Siluanov had stated that “we can see a de-dollarization of the world economic system,” he also made it clear that the government has no plans to ban cryptocurrency trading in Russia. The finance minister commented: “We have never banned anything and we won’t start with cryptocurrencies now.”

11. It’s not all doom and gloom

The Russian government has, however, announced its intention to regulate cryptocurrency exchanges, develop a roadmap for how to monitor transactions as well as implement rules for how transactions should be carried out. This will include making sure that transactions are carried out in a fully transparent manner.

12. Bitcoin is still legal in Russia

Bitcoin is still legal in Russia as well as other countries like Japan, South Korea and China. Many cryptocurrencies are regulated by the government of these nations but they do not consider them illegal. There have been several reports of authorities blocking access to cryptocurrency exchanges across China but this echo’s the approach taken by a number of countries, including Russia, Japan and South Korea. It is certain that bitcoin in Russia will continue to rise while it remains legal there.


Cryptocurrencies are here to stay and it doesn’t matter what Russia or any other country thinks about them. The global fascination with crypto-coins is real and getting stronger by the day. Russia’s ban on crypto trading and using cryptocurrencies will not stop the craze from spreading across the globe. The recent Blockchain Conference in Moscow has shown that Russia is slowly coming around to embracing blockchain technology as well.

There are many labels that could be given to describe me, but one thing’s for certain: I am an entrepreneur with passion. Whether it's building websites and social media campaigns for new businesses or traveling the world on business trips - being entrepreneurs means constantly looking at yourself in a different light so as not get bored of your own success!


Please enter your comment!
Please enter your name here