Russian Federation Bans Bitcoin Citing Use of the Currency is ‘Suspicious’

As more and more online retailers warm up to the idea of accepting Bitcoin currency, widespread acceptance is still a long way off. This is especially true of Russia, which just dropped the ban hammer on Bitcoins on the basis that it runs afoul of existing laws. Russia actually went one step further and called the digital currency "suspicious."

The announcement was made by the General Prosecutor of the Russian Federation. Serving as justification for the ban is the fact that the Central Bank of Russia views Bitcoin as a money substitute, which is restricted under Russian law.

Bitcoin Pile
Image Source: Flickr (antanacoins)

Russia isn't the only territory to ban Bitcoins. The virtual currency is also unwelcome in China and Kazakhstan, is forbidden from foreign trading in Iceland, and potentially in Thailand as well. Meanwhile, places like the United States, Britain, Brazil, and the European Union seem to be much more open to the crypto-currency.

"What I find fascinating is the United States, which is normally concerned with risk, is embracing Bitcoins," Deakin University Faculty of Business and Law Professor Loius De Koker said. "It makes me wonder if they have cracked the crypto."

The appeal for retailers is that Bitcoin value keeps rising. By that same toke, Bitcoins are also susceptible to wild fluctuations in the market.