Russia's Central Bank proposes ban on Cryptocurrency trading and mining

[romero121]

Russia's Central Bank have made a ban over cryptocurrency trading and mining mentioning it would destroy the base of country's monetary policy.

As it tops the list of cryptocurrency users and mining, the bank cited cryptocurrency and mining cause financial and environment problems. Through this it hurts the green agenda of the country.

Russia have already banned the use of cryptocurrency to make payments and has restricted people investing on mutual funds using crypto.

A bill needs to be passed for the ban and accounting the same it is prioritised for a regulatory framework during this State Duma's Spring session.

Russia serves to be an important location for mining after the ban from China. Recently Kazakhstan also experiencing difficulties on cryptocurrency mining. Most of them into the cryptocurrency mining prefer for a regulation and taxation on mining than a complete ban.

Data : Russia's Central Bank proposes ban on Cryptocurrency trading and mining

[Dave1]

As far as I can remember, Russian has been saying this since 2017?

But the problem is that one day they will say that they are going to issue a blanket ban, but the next day another official will give a statement that will totally contradict everything.

So for now, it's better to "take everything with a grain of salt" news coming from Russia regarding crypto (whether positive or negative).

[Ozero]

As far as I can remember, Russian has been saying this since 2017?

But the problem is that one day they will say that they are going to issue a blanket ban, but the next day another official will give a statement that will totally contradict everything.

So for now, it's better to "take everything with a grain of salt" news coming from Russia regarding crypto (whether positive or negative).

If something good was said in Russia regarding cryptocurrency, especially about the intentions of legislative consolidation of this, I would treat such news with a certain degree of skepticism. However, the negative intentions towards it, declared by the Central Bank of the country, and even more so backed up by the relevant bill submitted to the State Duma, should be taken more seriously. The Russian authorities have already given a very negative attitude towards cryptocurrency and have repeatedly expressed their intention to completely ban the use of cryptocurrency and its mining, even proposing to establish criminal liability for its use. Considering what law was adopted in Russia regarding cryptocurrencies, I would not be surprised if they still introduce a complete ban on cryptocurrencies.

[pooya87]

Last time I checked from reliable sources, there was only one proposal and it was banning banks from investing in cryptocurrencies or mining cryptocurrencies. It had nothing to do with people and whether they invest in bitcoin or mine it.
Similar bans already exist in a lot of other countries prohibiting banks from getting involved in crypto markets.

[davis196]

All the central banks around the world are usually against cryptocurrencies in general(this involves both trading and mining).I have never seen a central bank being friendly towards cryptocurrencies.
Russia is being anti-crypto for years and many Russians are still trading crypto and many miners have been mining crypto on Russian territory.I possible crypto ban means nothing,since many Russians don't care when it comes to breaking the Russian law.
This is just a proposal.It might be accepted or it might be declined.
I can see Russia becoming "the new China" for the cryptocurrency world.
More FUD news from Russia are yet to come.

[avikz]

It isn't the first time Russia is planning to ban cryptocurrency and mining. Even earlier they have created some rules where crypto miners were barred from receiving their mining rewards in cryptos. I don't know how that worked but since now the Central bank is proposing a blanket ban, I assume the previous ruling didn't work on government's favor. That's quite unfortunate! But again these kind of things are expected in a communist country. Communism wouldn't flourish unless there are poor people in their country those who will believe that communists are fighting for their rights! So that's how communism works where individuals don't have power to go against the government. Prime examples - China and North Korea.

Probably that's why we are seeing a bloodbath in the crypto market today!

[zasad@]

I will comment because I live in Russia.
The central bank has long wanted to ban cryptocurrencies, but the shadow market in Moscow is probably the largest in the world.It may not be the largest in terms of trading volume, but in terms of accessibility and ease of buying and selling cryptocurrency, this is the largest market in the world.
This is just a small part of this market:
https://www.bestchange.ru/bitcoin-to-ruble-cash.html

[Baofeng]

Probably that's why we are seeing a bloodbath in the crypto market today!

The timing though of the news, those who wanted to create panic and fear really knows the timing of releasing this kind of statement.

But then again, this kind of news will really affect the market negatively, but it might be short term though. Next week we will forget about this news and we might see the price going up and recovering to mid $40k again.

[kryptqnick]

Central banks tend to be hostile to cryptos because aren't they the ones responsible for fiat, aside from viewing cryptos as competitors of banks because they make digital individual transactions without intermediaries possible? But this hostility might not be met with support from other authorities. With the risk of SWIFT being denied to Russia if it invades Ukraine, I don't think Russia has the luxury of banning potential alternatives. Perhaps some mining restrictions will follow, but I don't think that usage of cryptos will be banned. As for mining, I guess a new country will be required for that, but the market will not suffer long-term damage.

[Welsh]

As far as I can remember, Russian has been saying this since 2017?

But the problem is that one day they will say that they are going to issue a blanket ban, but the next day another official will give a statement that will totally contradict everything.

So for now, it's better to "take everything with a grain of salt" news coming from Russia regarding crypto (whether positive or negative).

Its not Russia, i.e the government. It's the central bank which means this is pretty meaningless. A lot of organisations, banks or whatever routinely propose things to the government, and more often than not get turned down.

What your referring too about contradicting each other could potentially be various different people from different parties or organisations, rather than from the currently in control government officials. Even past officials often give their opinion about things, but by no means does that mean they're representing the government.

Last time I checked from reliable sources, there was only one proposal and it was banning banks from investing in cryptocurrencies or mining cryptocurrencies. It had nothing to do with people and whether they invest in bitcoin or mine it.
Similar bans already exist in a lot of other countries prohibiting banks from getting involved in crypto markets.

Which benefits the cryptocurrency community, since banks have a rather large amount of spending power, which would actually centralize the share of Bitcoin slightly. Not anything that would be truly problematic, but enough to feel a little uncomfortable about it.

[Finestream]

I would already believe if it's already official, there has been a lot of rumors about Russia being anti bitcoin but they are not similar to China which really made their decision to ban bitcoin trading. If that will happen, I think it will cause some huge panic but it will only be temporary as "crypto ban" is not new in the crypto space, and everytime we have that kind of news, the effect is only temporary to the entirety of the market.

[dkbit98]

I don't know if this proposal will be accepted by Russian government but it would be a bad for them to follow example of China banning Bitcoin mining and everything else.
Their central bank is preparing digital ruble and I guess they don't want any competition or distractions from real decentralized currency like Bitcoin.
I said before that more countries could do the same like China, and I expected Sweden or Norway would be the first, but we should not be afraid of this if it happens.
Checking Bitcoin mining hashrate and it's at all time high, despite all the fud, news and market crash, and that is very important.

[asus09]

Russia's central bank recently proposed a ban and mining of cryptocurrencies, the banks reasoned that they were banning all of them, they were afraid it could threaten the financial stability and welfare of citizens, the Russian central bank wanted to follow China's lead, but so far I have not received any news from Russian government, whether the Russian government responds to the central bank's request or vice versa, Russia is the third largest player in the world in bitcoin mining..

[nira09]

Russia's central bank recently proposed a ban and mining of cryptocurrencies, the banks reasoned that they were banning all of them, they were afraid it could threaten the financial stability and welfare of citizens, the Russian central bank wanted to follow China's lead, but so far I have not received any news from Russian government, whether the Russian government responds to the central bank's request or vice versa, Russia is the third largest player in the world in bitcoin mining..

It's true, sometimes someone is not very careful about receiving the news, right now a complete ban on Cryptocurrencies in Russia is a proposal, not a decision. So basically this news should have no impact, but it looks like a lot of people are freaking out selling.
Considering Russia is the NO 3rd country after India and America in terms of Bitcoin ownership

[fenican]

Russia's GDP is the size of Italy, large geographically but pissant economically, so... who cares?

[pawanjain]

I will comment because I live in Russia.

Can you comment on the genuinity of this news. Even I had heard that Russia is calling for a complete ban on cryptocurrencies.
But calling for a ban doesn't mean they are banning it right away. May be you might know better as to what the situation is in there.
Are they banning it right away or do they require an approval from someone or are they just proposing for a ban ?

[hatshepsut93]

Even if Russia will not ban crypto soon, I expect it to do it some time in the future, because much like China they have chosen the road of totalitarianism, so banning crypto will be only logical for them. They probably didn't ban it yet because they are looking at ways to benefit from it, like bypassing sanctions, mining it, using for trade with allies, but none of that actually happened yet.

But if China's ban wasn't too bad for Bitcoin, Russia's would be even less noticeable, because economically Russia is a much smaller player.

[stompix]

Last time I checked from reliable sources, there was only one proposal and it was banning banks from investing in cryptocurrencies or mining cryptocurrencies. It had nothing to do with people and whether they invest in bitcoin or mine it.

More reliable than this?
https://www.cbr.ru/Content/Document/File/132241/Consultation_Paper_20012022.pdf

Scroll down to 4.2:

In our opinion, appropriate additional measures:
1. Introduction of liability for violation of the ban on the use of cryptocurrency as a means of payment for goods, works and services sold and bought by legal entities and individuals - residents of the Russian Federation.
2. Introduction of a ban on the organization of release and (or) release, organization of circulation and exchange cryptocurrencies (including crypto exchanges, crypto exchangers, P2P platforms) on the territory of the Russian Federation and establishing liability for violation of this prohibition.
Mechanisms should be developed to identify transactions and persons carrying them out after the introduction of a ban; mechanisms for blocking transactions aimed at buying or selling cryptocurrencies for fiat currency. Authorized person must be defined body (bodies), which will be entrusted with the authority to implement measures
3. Introduction at the legislative level of a ban for financial organizations on their own investments in cryptocurrencies and related financial instruments, prohibition
to use Russian financial intermediaries and financial infrastructure market to carry out any operations with cryptocurrency (acquisition, implementation
payments and transfers, alienation of cryptocurrencies) and to facilitate the implementation similar operations (including the provision of custody services or the promotion of risk through derivatives).

Even if Russia will not ban crypto soon, I expect it to do it some time in the future, because much like China they have chosen the road of totalitarianism, so banning crypto will be only logical for them. They probably didn't ban it yet because they are looking at ways to benefit from it, like bypassing sanctions, mining it, using for trade with allies, but none of that actually happened yet.

Every country that is is deep s***t will look at banning it rather than using it, especially ones with wannabe dictators like most of the eastern world is. They have no use for BTC other than their personal interest and if BTC could be used by the people of the country for escaping the clutches of their failure of a state then that is a threat that offset any possible gains.

But as always, fortunately, there is always Europe and North America, and 2 more countries in the bottom left where usually there is a flower pot blocking the map) 

[hyudien]

As it tops the list of cryptocurrency users and mining, the bank cited cryptocurrency and mining cause financial and environment problems. Through this it hurts the green agenda of the country.

I always think of one thing, banks have no other reason than the negative side of how cryptocurrencies work. They often say the damage to the environment is even to the point that cryptocurrencies that don't use mining even become generalized. Apart from saying money laundering and all sorts of things that to me every bank would at once say the same reason. It's no wonder in Russia, a part of the country that is not friendly with crypto and has proposed a ban to stop mining, almost 85% using this excuse. to frighten its citizens.

Russia serves to be an important location for mining after the ban from China. Recently Kazakhstan also experiencing difficulties on cryptocurrency mining. Most of them into the cryptocurrency mining prefer for a regulation and taxation on mining than a complete ban.

Then talking about the problem faced in Kazakhstan is a total power outage in almost every region, so not only Bitcoin mining is hampered, but the financial system at the bank is finally hampered. But what surfaced was Bitcoin mining. So here we can see that the media is only raising this news to damage the market.

[Leviathan.007]

A heard the same thing on the news a few hours ago about Russia and some traders were saying the bitcoin price has gone below 40K because of this negative news, since I'm not from Russia I cannot say anything or confirm this news but still all we know is bitcoin cannot be suspended by any government due to the decentralization of the network after China banning bitcoin it was expecting to see Russia doing the same thing because they are more close together politically than the USA, however regardless of Russia government, I don't think if the effect of this negative news is going to be stay for longtime.