is applying money-laundering rules to "virtual currencies," amid growing concern that new forms of cash bought on the Internet are being used to fund illicit activities.The move means that firms that issue or exchange the increasingly popular online cash will now be regulated in a similar manner as traditional money-order providers such as Western Union Co.They would have new bookkeeping requirements and... Most Popular Videos Film Clip: 'The Big Sick' Lower Your Wireless Bill With These Tips 'Bridge Crew': Voice Command Comes to 'Star Trek' VR Videogame A New Road to Income: Barron's Buzz Film Clip: 'The Beguiled'Only a year ago Russia’s Finance Ministry was threatening jail time to anyone using digital currencies.In a major U-turn, it’s now edging closer to their acceptance as a legitimate financial instrument to open a new line of attack on money laundering.The authorities hope to recognize bitcoin and other cryptocurrencies in 2018 as they seek to enforce rules against illegal transfers, Deputy Finance Minister Alexey Moiseev said in an interview.

The central bank is developing a joint position together with the government on digital currencies, according to its press service.“The state needs to know who at every moment of time stands on both sides of the financial chain,” Moiseev said.bitcoin gift card walmart“If there’s a transaction, the people who facilitate it should understand from whom they bought and to whom they were selling, just like with bank operations.”While bitcoin isn’t regulated by any government, it has come under increasing scrutiny in some countries as a way to shelter assets from the authorities or launder ill-gotten gains.ethereum hiringIn China, which has occupied a central role in trading and mining bitcoin in recent years, the three largest exchanges imposed a moratorium on all coin withdrawals in March as the central bank issued new guidelines on their use.bitcoin deposit confirmation

Tracking cryptocurrencies could become the latest tool enlisted in the Bank of Russia’s battle against money laundering, which has seen hundreds of lenders lose their licenses over the last three years.bitcoin perthThe plan to legalize and monitor bitcoin is taking shape as traditional schemes are drying up, with dubious operations such as fake trades and loans used to move money abroad dropping by half to $771 million last year, according to central bank data.Bank of Russia Deputy Governor Olga Skorobogatova said in February that the authorities would decide if digital currencies can be considered as asset, cash or security by mid-2017.Initially, cryptocurrencies in Russia are most likely to be bought via bank accounts in order to make online purchases, with some also acquired as a speculative investment, Alfa-Bank Vice President Oleg Legostev said in comments emailed by the lender’s press service.ethereum event may 22

Bitcoin rose 1.1 percent to $1,215.85 at 10:09 a.m.in New York on Tuesday.It has gained 28 percent since the start of the year.Foreign banks have sometimes been swept up in investigations of Russian schemes.bitcoin feverRoyal Bank of Scotland Group Plc received information requests from the U.K.in March in relation to an alleged money laundering ring that moved money through Moldova and Latvia between 2010 and 2014.Deutsche Bank AG in January was fined $629 million by U.K.authorities for compliance failures that saw the bank help wealthy Russians move about $10 billion abroad using transactions that may have covered up financial crime.Crime, corruption, and tax evasion spawned at least $211.5 billion in illicit Russian outflows between 1994 and 2011, with illegal transfers reaching $552.9 billion, according to Washington-based Global Financial Integrity.Bitcoin was the first digital currency to achieve a measure of popularity, thanks to its use of blockchain, an online ledger that tracks and verifies every time the virtual money is used.

It’s faced some criticism from those who say the software it relies on is too rigid to gain widespread acceptance, with hipper investors moving on to the more sophisticated record book used by Ethereum.One of the most prominent players in the Bitcoin universe, Charles Shrem, was arrested by federal authorities on Sunday and accused of helping smooth the way for drug transactions on the now-defunct online bazaar Silk Road.Shrem was a co-founder and chief executive of a popular website, BitInstant, where Bitcoins could be bought using dollars.At the age of 24, Mr.Shrem was a regular speaker on the Bitcoin convention circuit, and was also on the board of the Bitcoin Foundation, a nonprofit organization that educates the public on digital money.The criminal charges unsealed on Monday by the United States attorney’s office in Manhattan claim that Mr.Shrem used his company to knowingly convert money into virtual currency for people interested in buying narcotics on the Silk Road site.He was also accused of personally buying drugs on the site.

According to the complaint, the scheme was operated in cooperation with another man, Robert Faiella, known as BTCKing, who was arrested on Monday in Florida.The case is already causing discomfort in Bitcoin circles, where the line between legal and illegal enterprises has long been somewhat blurry, hindering public acceptance of digital money.The price of Bitcoin dropped after the announcement of the arrests on Monday, and was down over 7 percent in the evening to around $810.Even as the popularity of virtual currencies has exploded — the price of a single Bitcoin is up over 5,000 percent in the last year — government officials have not yet come up with clear regulation governing the use of virtual currencies under the law.That fact has made it easier for theft and fraud to occur even on legitimate websites.BitInstant appeared to be firmly in the camp of legitimate virtual currency businesses earlier this year.The company won the backing of Winklevoss Capital Management, which is run by the Winklevoss twins, who were early players in Facebook.

After the arrests, the Winklevoss brothers put out a statement saying that they “are obviously deeply concerned about his arrest,” and “support any and all governmental efforts to ensure that money-laundering requirements are enforced.” The brothers also said that they “look forward to clearer regulation being implemented on the purchase and sale of Bitcoins.” The issue is likely to come up on Tuesday at the beginning of a two-day hearing on how regulators should deal with Bitcoin, organized by the New York State superintendent of financial services, Benjamin M. Lawsky.The Winklevoss brothers are both scheduled to testify.When the Silk Road website was shut down last year, many Bitcoin fans cheered, arguing that the action was important in stamping out the illegal activity that had thrived in the early days of Bitcoin.Since then, the price of Bitcoin has risen and many mainstream investors have expressed interest in the currency’s possibilities.Shrem’s arrest may again raise questions about the distance between the legal problems in Bitcoin’s past and its legitimate financial opportunities.

The complaint unsealed on Monday suggested that Mr.Shrem and his business partners were themselves grappling with what was and was not allowed.When a co-founder of BitInstant asked Mr.Shrem why he was working with someone with such clear affiliation with Silk Road, Mr.Shrem wrote in an email in 2012 that, “he has not broken a law and Silk Road itself is not illegal,” according to the complaint.Shrem added, “We make good profit from him.” The United States attorney in Manhattan, Preet Bharara, said in a statement on Monday, “We will aggressively pursue those who would co-opt new forms of currency for illicit purposes.” Mr.Faiella were both charged with conspiring to launder money, and Mr.Shrem was also charged with “willfully failing to file any suspicious activity report” about Mr.BitInstant stopped operating last summer for reasons that remain unclear.Customers later filed suit against the company, claiming that the company misrepresented its services, and sought class-action status.