UMMOA Treasury recognises BTC cryptocurrency


Various countries around the world either ignore Bitcoin (BTC); allow it with great freedom; allow it, but tax it without any moral (or logical) authority; allow it, but warn that it is a very risky investment (and that's all it is for most people); restrict the use officially by barring financial institutions and payment companies from buying and selling the virtual currency, and/or by not allowing insurance companies to insure Bitcoin-linked products; or ban Bitcoin and other cryptocurrencies altogether (by banning the trade of cryptocurrencies by individuals).

On 29 January 2014, the Central Bank of Russia issued an official warning, stating that all Bitcoin transactions will be considered potentially suspicious, and added that use of Bitcoins in Russia is illegal.

After the announcement, Russian users said that they planned to ignore the ban. So long you don't have to convert Bitcoins into Rubles, most people figured they would be safe. Most Russians probably don't use monetary surrogates, including cryptocurrencies, for buying illegal goods or money laundering. As in China, most people are buying Bitcoins for investment purposes.

However, on 1 August 2014, the Russian Ministry of Finance announced on the government's regulation website that it was drafting a bill relating to cryptocurrencies (including Bitcoin) which, if approved, will likely see those who break the new laws end up in jail.

So basically Russia will soon join Bolivia and Ecuador, the only countries that apparently outright ban the use of cryptocurrencies, including Bitcoin.

China may be next, as the China Central Bank essentially wen't through the same phase as the Central Bank of Russia on 5 December 2013, and the Chinese are likely to copy Russia's actions in the near future, even though it is basically a form of financial tyranny, because its purpose goes far beyond trying to prevent individuals from buying illegal goods or money laundering. So a few bad apples or oligarchs in Russia, will likely ruin any potential benefit of Bitcoin for all Russians.

Bitcoins are legal in the US, but the IRS treats them as "property", not as currency or virtual currency, and taxes them through the capital gains tax, and US Treasury authorities subject Bitcoin to money transmitter regulations, which is a fairly high regulatory burden for a non-currency.

According to the Consumer Financial Protection Bureau (CFPB), Bitcoins are the "Wild West" of currencies, so you should be careful even if you don't live in Russia, Bolivia, or Ecuador. Money Morning has stated that the CFPB report makes Bitcoin seem more risky than it is.

The UMMOA Treasury does not currently invest in Bitcoin neither for its own benefit as an institution (the UMMOA Treasury is a small precious metals reserve), nor for the benefit of UMMOA nationals (the UMMOA Treasury is also a small holding company for socially beneficial purposes), but it will go counter to the general trend in Russia because it does not wish to infringe, directly or indirectly, on the right of any Ummoagian, including Ummoagians holding Russian citizenship, to at least have access to information about Bitcoin.

Towards that purpose, and recognising that most (good) people are buying Bitcoins primarily for investment purposes, not for buying illegal goods or money laundering, the UMMOA Treasury now recognises the Bitcoin (BTC) cryptocurrency, and now provides an Internet converter at the UMMOA Treasury website for this specific cryptocurrency only.


Legality of Bitcoin by country
http://en.wikipedia.org/wiki/Legality_of_Bitcoin_by_country

Russia becomes the second country to ban bitcoin
http://rbth.com/business/2014/02/05/russia_becomes_the_second_country_to_ban_bitcoin_33871.html

Russian Ministry of Finance Drafts Bill Banning Bitcoin
http://www.coindesk.com/russian-ministry-finance-drafts-bill-banning-bitcoin/

China's ban on bitcoin doesn't make a difference — it was banned already
http://qz.com/154420/chinas-ban-on-bitcoin-doesnt-make-a-difference-it-was-banned-already/

US Regulator Calls Bitcoin 'Wild West'
http://www.foxbusiness.com/economy-policy/2014/08/11/us-regulator-calls-bitcoin-wild-west/

Bitcoin News: CFPB Report Makes Digital Currency Seem More Risky Than It Is
http://moneymorning.com/2014/08/12/bitcoin-news-cfpb-report-sows-fresh-fear-with-old-warnings/
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