7 February 2014, 10:23

Prosecutor General's Office, Central Bank to develop measures to fight bitcoin corruption




The Russian Prosecutor General's Office and the Central Bank will jointly develop measures to fight the circulation of virtual currencies in Russia, the Prosecutor General's Office said in a statement.

"Anonymous payment systems and crypto currencies, including the most well-known of them, bitcoin, which have expanded to a certain degree, are currency surrogates and cannot be use by citizens and legal entities," the document said.

The situation with virtual currencies has been discussed during an expert group meeting of the inter-agency working group on fighting white-collar crimes. Head of the Prosecutor General's Office Main Department overseeing the compliance with the federal law Anatoly Palamarchuk, Russian Central Bank Deputy Chairman Dmitry Skobelkin, heads of Central Bank relevant departments, authorized officials of the Federal Security Service (FSB) and Interior Ministry and employees of the Prosecutor General's Office headquarters attended the meeting.

According to the law On the Russian Central Bank, Russia's official currency is the ruble and issuing currency surrogates and introducing them in the country is prohibited, the statement said.

Lack of real value is a peculiarity of bitcoin as virtual currency, the Prosecutor General's Office said.

"The price for it is determined solely by speculative actions, which leads to a high risk of depreciation and, as a result, violates the rights of citizens and organization using it," the statement said.

Owners of crypto currencies currently lack the opportunity to protect their interests in courts or administratively in Russia, the Prosecutor General's Office said.

Joint actions of the Central Bank and law enforcement authorities in preventing the violations related to the use of crypto currencies were determined following the meeting, the document said.

Voice of Russia, Interfax

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