Update: BTC-e has increased fees on withdrawals to fiat.
Update #2: Looks like we were right for the wrong reasons. The original source for the story is reporting that their website was hacked.
There are Still Problems for Bitcoin in Russia
While there are easy ways to get around a nationwide ban of BTC-e in Russia, the reality is that the regulatory picture around Bitcoin is still not very clear in this country. A country that is willing to ban websites without a review from any court is definitely the kind of country that would also try to ban Bitcoin. The Russian government recently sent out a warning about how businesses and the Russian people should try to avoid Bitcoin because of the risks involved with the digital currency. It may only be a matter of time before Russian regulators stop making recommendations and start shutting down Bitcoin businesses.
Banning Bitcoin Won’t Work
As I’ve written in the past, the reality is that a ban on Bitcoin will be about as useful as banning the BTC-e website. The Russian people will simply use Tor and VPNs to get around the strict regulations placed on the Internet or Bitcoin. The fight against Bitcoin is a battle that cannot be won by any government, but that definitely won’t stop them from trying.
Note: Thanks to eliotcougar from our chatroom for helping out with some info for this story.
Last modified: February 4, 2014 12:16 UTC