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Nobody does the dark side of the internet better than the Russians. Moscow’s hackers have long been world leaders in cybercrime. So it’s no wonder Russian computer geniuses are heavily involved in the internet’s latest craze: virtual currency. Cryptocurrencies, such as bitcoin, work on a technology known as blockchain, a decentralized network of synchronized online registries that track the ownership and value of each token.
They can be used as virtual cash and traded like currency. Private companies can issue their own virtual currencies to finance specific ventures, similar to crowdfunding or bonds. And their future value can also be traded, like options. Richard Titus, an investor of cybermoney. Virtual currencies are also a potential bonanza for money launderers, online blackmailers and cybercriminals—especially in Russia. Russians have been involved in cryptocurrencies since their inception in the mid-2000s.
Criminals used the first virtual currencies, such as e-gold, to commit cross-border credit card fraud. 4 billion is indicted by a U. The Kremlin has long been wary of cryptocurrencies, which are technically illegal in Russia—yet the government recently signaled it’s changing its stance. Kirill Dmitriev, head of the Russian Direct Investment Fund, told state-run news agency Ria Novosti in August. 100 billion, a long way off the estimated 10.
There are other legitimate reasons Moscow is interested in cashing in on cryptocurrencies. The Kremlin is keen to attract the enormous cash flow being poured into blockchain projects around the world. It also wants to open up Russia to the bitcoin mining industry, in which anyone can claim newly issued bitcoins—generated automatically by a preprogrammed, blockchain-based computer network—by solving extremely complex codes that unlock each new coin. 100 million annual market share for Russia.