Russia's Finance Ministry Appreciates Blockchain Tech, Considers Bitcoin Dangerous

While a draft law, pursued by the Russian Ministry of Finance that seeks to criminalise bitcoin conversions, is being reviewed by the Cabinet, recent statement from deputy finance minister Alexey Moiseev suggests that the office is dealing with bitcoin and its underlying blockchain technology in different ways.

"We feel that blockchain technology is very important in the development of various Internet-based services", Moiseev told CoinDesk. "We appreciate the potential relevance of blockchain technology for the development of e-commerce and therefore we feel that it should be allowed and developed, but bitcoin themselves, in particular, the implementation of the bitcoin transactions into the real economy, in the real banking system can be very dangerous”.

Last month, Moiseev told the news source that a proposed draft law has been created and, if passed, would mean people involved in crypto-to-fiat conversions would face up to four years in prison.

The recent terrorist attack on Paris has once again triggered the debate on the potential of bitcoin and other digital currencies to be used for terrorism financing and money laundering purposes. Moiseev also expressed concerns about the potential of the digital currency to make the country's financial system more vulnerable:

"We are very concerned about the potential developments there as we have built serious system of protection against money laundering and financing terrorism using conventional banking system. We are quite afraid of opening this window up by allowing a free convertibility of bitcoins into rubles and back."

He further said that Russia was monitoring how bitcoin was being regulated by its contemporaries in both Europe and elsewhere.

"We are looking at how bitcoins are being regulated, how they are being protected from potential abuse by money launderers and terrorists," he added.