Burger King issued its digital coin last month. Prosecutors have summoned its management in Russia in the Lzmailovo district over the use of the cryptocurrency. Burger King has so far received two summon notifications from the Lzmailovo prosecutor's office. One summon letter was dated the September 13 while the other was dated September 19, according to a Burger King representative.
In the letters, prosecutors noted that Burger King issued cryptocurrency and began allowing payments to be made with it. The summon letters were also aimed at informing the management of the company in Russa that it is illegal to issue and use any other currency other than the Ruble in Russia. Russian investigators also want to know how Burger King's digital coin operates and whether there was a mass issuance of the currency.
Whoppercoin
The coin is named after Burger King's Whopper sandwich. The digital coin was introduced in late August this year. The coin acts as a loyalty program hosted on the wave platform.
Burger King rewards customers with Whoppercoins after they make a purchase. Customers can use the rewards they have received to buy a Whopper sandwich. The digital coins can also be traded for other cryptocurrencies as well as for fiat coins. A customer is issued with one Whopper coin for every Ruble they spend (1Ruble = 0.017US$). A customer will need to accumulate 1,700 whopper coins to redeem a Whopper sandwich.
Cryptocurrencies in Russia
According to Bitcoin news, the Central Bank of Russia and the finance ministry are working on a legal framework that will regulate the use of cryptocurrencies in Russia. The legislation is expected to come out before the end of this year. The Russian central bank stated on September 5 that Initial Coin Offerings (IOC) and cryptocurrencies are risky.
In the statement, the central bank indicated that it has not yet given the green light on the use of cryptocurrencies in Russia. In the statement, the bank also noted that most cryptocurrencies are issued and used by unknown entities and that these entities can use the virtual coins to engage in illegal activities such as money laundering and terrorism financing. In the statement, Russian authorities also noted that cryptocurrencies can fluctuate quickly and that there are high technological risks involved when handling them.
The future of cryptocurrencies
Most central banks around the world are yet to legalize the use of cryptocurrencies. Anonymity and the use of cryptocurrencies for illegal purposes has prevented their legalization. China recently banned ICO and cryptocurrency exchange sites. More crackdowns by governments on cryptocurrencies may occur as most cryptocurrencies are issued and used outside legal frameworks.