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After China, Russia bans Bitcoin over money laundering concerns

The Russian institution believes that Bitcoin is a purely speculative currency

ANI  |  Washington 

has reportedly banned virtual currency, Bitcoin, and has made it illegal for individuals and legal entities to use them.

The Central Bank of has announced that the official currency of the country is Ruble and is a money substitute, which is why it has been banned.

According to Tech Crunch, the reason for the decision is the alleged use of for money laundering and other criminal activities.

The Russian institution also believes that is a purely speculative currency and that there is a great risk of value losses.

Despite the fact that Bitcoin is a virtual currency and Russians can't be stopped from using it, companies that are based in and are working in the Bitcoin industry would have to consider relocating, as they would be considered breaking the law.

The report said that many countries and official institutions have decided to try and regulate Bitcoin just like Euros and US dollars.

has also banned the virtual currency for similar laundering concerns.

First Published: Sat, February 08 2014. 12:25 IST