Russian authorities are preparing to crack down on Bitcoin and have warned that those who use “cryptocurrencies” are breaking the law, as regulatory scrutiny of the virtual payment system intensifies around the world.
The promise of measures to curb the virtual currency was made after Russia leapfrogged China to become the second-fastest growing territory for Bitcoin software downloads, behind the US.
Russia’s intervention comes at another turbulent time for Bitcoin, whose price dropped sharply over the weekend because Mt Gox, one of the largest exchanges, stopped letting customers withdraw their money. It cited technical issues and promised an update today.
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