Investing.com - Bitcoin and other virtual currencies were lower on Monday as Russia prepares a legal framework for cryptocurrencies.
Bitcoin was trading at $8,167.20, falling 3.26% as of 8:47 AM ET (12:47 GMT) the Bitfinex exchange, not far from its session low of $8,054.10.The cryptocurrency has struggled to gain ground after falling to $6,000 in early February and is far from its peak of $20,000 in December.
Russia is preparing a regulatory framework for blockchain technology, Deputy Prime Minister Arkady Dvorkovich told students last week.
“When it comes to blockchain, a regulatory framework is mandatory; not necessarily too detailed and meticulous, in order to avoid the obstacles in implementing [blockchain] projects…it has to be done as soon as possible,” he said.
The country is also preparing to regulate cryptocurrency exchanges.
A digital asset bill that would impact cryptocurrencies was sent to the Duma, the lower house of Russia’s parliament, late last week. The bill would require crypto exchanges to comply with Know Your Customer procedures and sets a legal framework for the digital coins. Only licensed operators would be allowed to exchange cryptocurrencies into Russian rubles.
Meanwhile in Venezuela, citizens will be able to purchase the country’s virtual coin, called petros, starting April 20. The oil-backed national cryptocurrency can be used to buy property and the government intends to finance the construction of 230,000 new homes with funds from the pre-sale of the petro.
Other virtual currencies were lower, with rival Ethereum, the world’s second largest cryptocurrency by market cap, down 4.29% to $494.42 on the Bitfinex exchange. Ripple, the third largest virtual currency, slipped 4.68% to $0.59832 while Litecoin was last at $152.75, a decrease of 1.49%