That's not just bad news, that's HORRIBLE news! Have you seen on a map how big Russia is? There are now millions of people for whom bitcoin is going to be completely shut off. Proof:
The Prosecutor’s Office also discussed enforcement options, explaining that it was planning specific steps to choke off the distribution of cryptocurrencies in the country. There will be another meeting of the expert group, to discuss implementation options, the statement said.
So it's not just that the businesses can't legally operate... there will be KGB agents posing as buyers and sellers on localbitcoins and nabbing the people who try to buy OTC. ISPs will cut off access & rat on people who try to connect their nodes, so running a node will be limited to the 0.001% of individuals who know how to use I2P or Tor...
Bitcoin is fucked! And now that several major governments have done it (China, Russia, Indonesia, Kazakhstan, etc) it will only be a little while before the USA and Canada follow suit, and then the few remaining european countries that are still friendly towards it.
CONFIRMED CONFIRMED 100% CONFIRMED
Government regulation will be the death of bitcoin. As goes bittorrent and marijuana, so goes Bitcoin. A sad day.