Russia Banned Crypto Trading

[alexey14]

This is not good news, BTC price could be dump even more.

Alexey Guznov, head of the legal department at Russia’s central
bank, revealed the news in an interview with local news agency Interfax on March 16.

 Issuance and circulation of crypto in the country poses an “unjustified risk”
 Although the original bill “On Digital Financial Assets” stipulated that cryptocurrency trading would be allowed in Russia, the amended document will apparently prohibit nearly everything about crypto except holding, according to Guznov’s latest remarks.

 The official said that the upcoming law will explicitly prohibit the issuance and circulation of cryptocurrency and would introduce penalties for violating this law. Guznov argued:

 “In terms of the functioning of the financial system and consumer protection system, legalization of the issuance and facilitating the circulation of cryptocurrencies is an unjustified risk. As such, the bill explicitly prohibits emission and organization of cryptocurrency circulation, introducing legal liability for violating these rules.”

 Russia’s central bank would unlikely be able to regulate Bitcoin transactions
 Besides claiming that the crypto bill would ban Russian financial institutions from issuing digital assets, Guznov provided little clarity about the upcoming bill. When asked whether the Bank of Russia wants to ban residents from converting crypto into local fiat currency, the Russian ruble, or a foreign currency, Guznov did not provide a direct answer.

[coupable]

I found the interview with interfax news but it's in Russian language. Not many news about the new orientation of Russia toward cryptocurrencies, the media is busy with covid19 and the crash in the market.
According to this article published today in Cointelegraph, the ban law will be in the form of amendment, as the original bill about "digital financial assets" allows crypto trading and other forms of crypto use.
In my opinion, it's not the best time to work on this kind of ban while we should recommend people to use casheless systems to avoid body contact. Seems Russia is not really aware about how the use of crypto can limit the spread of the virus by its contactless nature .

[Kemarit]

I'm not surprised at all, I've been calling Russia to be against crypto since 2017. You just have to read between the lines, their statements are always contradictory. One day you will hear some government officials saying that they're going pro-crypto, and then the next days, another one will issue his statement against it. That's why I have been saying to take everything with a bag of salt any news releases coming from them as if they are going to adopt it.

@coupable - it's not that they are not aware of it, it's that they want to control everything, they don't want large exodus of capital or assets.

[pixie85]

They don't know what they want. I remember reading that they were baninmg crypto to isue their own cryptocurrency. This was years ago. Then they changed their mind and said blockchain is great. Then they did not issue any centralized crypto and just postponed everything. Then we heard about them trying to legalize it. Now we hear about them trying to ban it again? Ho many times can you change your mind about the same thing?

Don't FUD, wait until it's written in stone.

[gentlemand]

I don't believe a word that any Russian official says about crypto. They all talk shit and contradict each other.

And the only bit of crypto where Russia leads is scamming anyway. It never has been a significant market. If it goes it's unfortunate for Russians but the rest of the market will pay little attention.

And more than likely if any of this is true it'll be just the same as other 'bans' - banks will not be allowed to hold, issue or sell crypto directly and there are barely any banks anywhere on the planet that do that.

[coupable]

And more than likely if any of this is true it'll be just the same as other 'bans' - banks will not be allowed to hold, issue or sell crypto directly and there are barely any banks anywhere on the planet that do that.

According to the interview made with the Russian official, the amended document will be about forbidden everything related to cryptocurrencies except for Holding. This has no sense and reveals how much the Russian governors are confused about cryptos and how decisions are made. If we don't have to believe such news, then we should believe that they are creating a FUD. As instead focusing on fighting Corona, officials seems to have so much time dealing with non-urgent cases .

[CaVO32]

I don't believe a word that any Russian official says about crypto. They all talk shit and contradict each other.

And the only bit of crypto where Russia leads is scamming anyway. It never has been a significant market. If it goes it's unfortunate for Russians but the rest of the market will pay little attention.

And more than likely if any of this is true it'll be just the same as other 'bans' - banks will not be allowed to hold, issue or sell crypto directly and there are barely any banks anywhere on the planet that do that.

and if indeed they are totally banning the usage of crypto, they are going against the trend where other progressive countries are already legalizing the use of crypto. I think they will change their stance regarding this situation. there are so many Russians who are into crypto. who knows, some of their gvt officials are holders of crypto? it is only a matter of time when they will change their statement again towards crypto, just like China.

[Kelvinid]

And more than likely if any of this is true it'll be just the same as other 'bans' - banks will not be allowed to hold, issue or sell crypto directly and there are barely any banks anywhere on the planet that do that.

According to the interview made with the Russian official, the amended document will be about forbidden everything related to cryptocurrencies except for Holding. This has no sense and reveals how much the Russian governors are confused about cryptos and how decisions are made. If we don't have to believe such news, then we should believe that they are creating a FUD. As instead focusing on fighting Corona, officials seems to have so much time dealing with non-urgent cases .

That is ridiculous to think that they are allowing crypto for hold but not of the other activity. How could it work if they all just holding?
I don't know if we have to believe them because they are actually giving some confusion to their people. It much better to totally banned crypto and no holding exemption so people could think that they are serious about this. It simply they are not true about banning crypto and I may think that their statement can be changed anytime soon.

[squatter]

I don't believe a word that any Russian official says about crypto. They all talk shit and contradict each other.

Ditto. They have waffled on proposed cryptocurrency rules more times than I can remember. And that's all we're discussing here -- changes to a proposed bill, which may never get passed.
 

And the only bit of crypto where Russia leads is scamming anyway. It never has been a significant market. If it goes it's unfortunate for Russians but the rest of the market will pay little attention.

It's certainly not like the US or China in terms of adoption, but Russia's OTC market is flourishing. Cross-border remittance is also becoming a significant market.

[Rengga Jati]

Is it valid news? Can you show us the link where you got the news?
I'm still not really sure that in this situation, Russia announced to ban crypto trading. How poor the crypto traders there! Moreover, it may bring negative impacts to market trends. As we know that we in a decline phase, it probably triggers the more declines. 

[Lizzylove1]

The officials of Russia always give a conflicting information, one time you here crypto will soon be legal, another time you hear they want to develop their own coin, and today we are discussing banning and penalty. At the end of the day, the position will be changed. If the worst happens, Ukraine is close bye.

[jseverson]

Is it valid news? Can you show us the link where you got the news?

https://cointelegraph.com/news/russias-central-bank-seeks-to-ban-crypto-issuance-and-circulation

One thing of note is that it's not finalized yet.

Ditto. They have waffled on proposed cryptocurrency rules more times than I can remember. And that's all we're discussing here -- changes to a proposed bill, which may never get passed.

I wouldn't be surprised. They're already moving to outlaw payments, and Putin himself doesn't seem to be a big fan, outside maybe CryptoRuble (whatever happened to that? lol) and its potential to evade sanctions.

[senin]

It should be noted that in Russia there is now an anti-people government led by Putin. Putin strictly prohibits freedom of speech and freedom of demonstration, the manifestation of any protests against his clan. The situation with crypto in Russia will change only when this regime collapses. Cryptocurrency is financial freedom, therefore authoritarian regimes are always against cryptocurrency. Putin sent his specialists to Venezuela to help the Maduro regime create cryptocurrency Petro there. Russia uses cryptocurrency to avoid international sanctions. Putin’s regime is afraid that even his entourage will withdraw his assets abroad like rats from a sinking ship. All Putin’s policies are built on lies. They even now don’t intend to fight with coronavirus, because there are sorely lacking devices for ventilation of the lungs, and they no intend to invest a lot of money in it. There, they simply expect to cry the numbers about the sick. Therefore, we should expect that the Russian population will be completely ill with the coronavirus.

[davis196]

People in this forum were preaching that cryptocurrencies will replace paper money because of the coronavirus. Now you all know this ain't gonna happen.
I don't find any logic in the possible crypto trading ban in Russia.How they define the term "unjustified risk"?
Risk of what?All the markets are crashing.Will they ban stock trading as well?
I guess that Russia simply wants to protect it's national currency,but this is a chaotic measure.

[nosferzd]

Laws in the Russian Federation are written with the calculation of their optional enforcement. This will be a prime example. As well as the illicit exchange of fiat currency by private individuals

[enhu]

They're good  Seem like its not just the Chinese that are making crypto users confuse about their laws.  What is surprising is that Russians are the ones very busy in blockchain developments just like the Chinese.

But I don't think this is going to affect price. Its already down to its bottom, if it would then its gonna crush to hearts of the kids who invested at $10k.

[Twentyonepaylots]

They're good  Seem like its not just the Chinese that are making crypto users confuse about their laws.  What is surprising is that Russians are the ones very busy in blockchain developments just like the Chinese.

I just published last month about the Russian government taking over digital asset implementing laws and tokenization just like China and US, what happened? I thought they were doing good enough to compete with these major countries in cryptocurrencies adoption which will boost their country's economy. Seems like Putin is very confuse on what to do now with the trend.

But I don't think this is going to affect price. Its already down to its bottom, if it would then its gonna crush to hearts of the kids who invested at $10k.

A very dumb of me when I invested at $10K every one I know told me that, now that the price is kissing the floor I have nothing to do but wait until it pumps. Russian would not hesitate to still trade crypto that's for sure but somehow it would affect the price, perhaps their government would be strict about this one.

[jossiel]

Did really they?

Last time, I was just watching that they were really welcoming to cryptocurrencies and they've planning to integrate it with their financial system. Probably with the banks and other financial institutions and now this?

Hmmm, what a timely ban.

[Sterbens]

Did really they?

Last time, I was just watching that they were really welcoming to cryptocurrencies and they've planning to integrate it with their financial system. Probably with the banks and other financial institutions and now this?

Hmmm, what a timely ban.

Is not it in Russia that cryptocurrency is growing so rapidly that many successful projects originating from Russia and now they are banning is there a strong reason in the country to be banned?

I know a lot before Russia would adopt the blockchain into their system but now it is very surprising if in Russia cryptocurrency is really prohibited.

[camito]

This is not good news, BTC price could be dump even more.

Alexey Guznov, head of the legal department at Russia’s central
bank, revealed the news in an interview with local news agency Interfax on March 16.

 Issuance and circulation of crypto in the country poses an “unjustified risk”
 Although the original bill “On Digital Financial Assets” stipulated that cryptocurrency trading would be allowed in Russia, the amended document will apparently prohibit nearly everything about crypto except holding, according to Guznov’s latest remarks.

 The official said that the upcoming law will explicitly prohibit the issuance and circulation of cryptocurrency and would introduce penalties for violating this law. Guznov argued:

 “In terms of the functioning of the financial system and consumer protection system, legalization of the issuance and facilitating the circulation of cryptocurrencies is an unjustified risk. As such, the bill explicitly prohibits emission and organization of cryptocurrency circulation, introducing legal liability for violating these rules.”

 Russia’s central bank would unlikely be able to regulate Bitcoin transactions
 Besides claiming that the crypto bill would ban Russian financial institutions from issuing digital assets, Guznov provided little clarity about the upcoming bill. When asked whether the Bank of Russia wants to ban residents from converting crypto into local fiat currency, the Russian ruble, or a foreign currency, Guznov did not provide a direct answer.

I was actually shocked to hear this news because Russia is one of the countries which we know is in the list of those which support cryptocurrency. I believe the crypto world wants a legit article regarding this. But if it is really true, I think it is just a formed step and still in tbe process of observation. At a time like this, cashless system is needed. But if this is due to the decline of BTC also, then the decision is reasonable.