Bitcoin at $581, Russia Prepares to Re-Ban Cryptocurrencies

Bitcoin is back to trading above $580 after a short excursion below the figure earlier in the

day. BTC prices hit a three day low of $572.69 today before rebounding. We are still in somewhat of a no man’sland. Unless bitcoin can climb back above $600, further gains are uncertain. Similarly, we can’t count onmore losses until BTC/USD nears the important support at $550. Here is how today looked on BTC-E. Prices are somewhat higher at $585 per coin on BitStamp.

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Russia is preparing to once again ban bitcoin and other cryptocurrencies. The country already had somewhat of a shadow ban after a controversial ruling in February of this year. The implications of those rules meant that anyone dealing with cryptocurrencies may be indicted on charges of money laundering and supporting terrorism. A month ago, the Russian Central Bank softened its stance.200x200 The Bank’s first deputy chairman Georgy Luntovsky said that: ”At this stage we need to watch how the situation develops with these kinds of currencies. These instruments should not be rejected.”

Now, Russian news agency RIA Novosti reports that according to a draft law from Russia’s Finance Ministry, substitutes of legal currency (like digital currencies) may be banned due to their potential for illegal use in money laundering and in the the underground economy. While this is certainly bad news for our Russian friends, the effect on the price of bitcoin has been non-existent. Unlike China, whose bans have triggered a multi-month long decline in BTC prices, Russia doesn’t house any major bitcoin exchanges.

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– See more at: http://www.forexnews.com/blog/2014/08/03/bitcoin-581-russia-prepares-re-ban-cryptocurrencies/#sthash.5N7jLphy.dpuf

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