Russia To Ban Cryptocurrencies

[Ozero]

The Bank of Russia said crypto mining created problems for energy consumption as Russia is one of the largest crypto-miner in the world. Meanwhile, The central bank is planning to issue its own digital rouble. The proposed ban includes crypto exchanges too.

Banning cryptocurrency in Russia won't bring any solution or creating digital ruble won't either. CBDC and cryptocurrency are not on same purpose. If Russia is having difficulty in their economy, they should better stop the war with Ukraine and get back into supply of energy to Europe and their economy will bounce back because the economic sanctions too will be lifted and not to look in the direction of banning crypto mining.

It is already too late for Russia's political leadership, headed by Putin, to return to its original position, which was before the attack on Ukraine. The choice has been made: Ukraine has suffered colossal material and human damage, there are sanctions that will not be lifted even if Russia withdraws all its unfinished troops from Ukraine. After all, there will be a question of paying reparations, which will be measured at least about a trillion dollars.
Russia will also not be able to resume deliveries of its energy carriers to Europe. The countries of Europe have fundamentally severed these relations with Russia, so as not to be dependent on it and not be subjected to pressure and blackmail on its part. The policy of aggression and pressure on other states will cost Russia very dearly, and many more generations of Russians will pay for it.

[1714766619]

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[zasad@]

The Bank of Russia said crypto mining created problems for energy consumption as Russia is one of the largest crypto-miner in the world. Meanwhile, The central bank is planning to issue its own digital rouble. The proposed ban includes crypto exchanges too.

Banning cryptocurrency in Russia won't bring any solution or creating digital ruble won't either. CBDC and cryptocurrency are not on same purpose. If Russia is having difficulty in their economy, they should better stop the war with Ukraine and get back into supply of energy to Europe and their economy will bounce back because the economic sanctions too will be lifted and not to look in the direction of banning crypto mining.

It is already too late for Russia's political leadership, headed by Putin, to return to its original position, which was before the attack on Ukraine. The choice has been made: Ukraine has suffered colossal material and human damage, there are sanctions that will not be lifted even if Russia withdraws all its unfinished troops from Ukraine. After all, there will be a question of paying reparations, which will be measured at least about a trillion dollars.
Russia will also not be able to resume deliveries of its energy carriers to Europe. The countries of Europe have fundamentally severed these relations with Russia, so as not to be dependent on it and not be subjected to pressure and blackmail on its part. The policy of aggression and pressure on other states will cost Russia very dearly, and many more generations of Russians will pay for it.

Russia has been a supplier of cheap resources to European countries for many years, and so far the supply of resources has not been stopped. European countries need 5-10 years to build new infrastructure at a huge cost, and logistics costs greatly increase the cost of resources. The Chinese have already occupied Renault car factories and produce their cars there, and the places of European concerns are occupied by Chinese ones. European sanctions greatly strengthen China's position by reducing the price of resources for the Chinese economy.

[Sexylizzy2813]

It is said that energy expert wants to prohibit mining cryptocurrency from every Russia homes, the energy committee of the state council of the advisory body of Russia president has impose the ban on the minting of digital currency in residential areas. Crypto related activity which serves as a means of income to many individuals in Russia especially in places that have access to cheap electricity is not yet regulated.Is like the ban has not gain much weight to make it legal maybe with time the ban will stand.

https://news.bitcoin.com/ban-on-crypto-mining-in-residential-areas-proposed-in-russia/

[zasad@]

It is said that energy expert wants to prohibit mining cryptocurrency from every Russia homes, the energy committee of the state council of the advisory body of Russia president has impose the ban on the minting of digital currency in residential areas. Crypto related activity which serves as a means of income to many individuals in Russia especially in places that have access to cheap electricity is not yet regulated.Is like the ban has not gain much weight to make it legal maybe with time the ban will stand.

https://news.bitcoin.com/ban-on-crypto-mining-in-residential-areas-proposed-in-russia/

I have already lost my mind, how many times I wrote that these laws do not work in Russia. If there is a profit from mining, then there will always be entrepreneurs who will earn money for this. But now in Russia there are many other problems that require a quick solution.

[virasog]

It is said that energy expert wants to prohibit mining cryptocurrency from every Russia homes, the energy committee of the state council of the advisory body of Russia president has impose the ban on the minting of digital currency in residential areas. Crypto related activity which serves as a means of income to many individuals in Russia especially in places that have access to cheap electricity is not yet regulated.Is like the ban has not gain much weight to make it legal maybe with time the ban will stand.

https://news.bitcoin.com/ban-on-crypto-mining-in-residential-areas-proposed-in-russia/

I have already lost my mind, how many times I wrote that these laws do not work in Russia. If there is a profit from mining, then there will always be entrepreneurs who will earn money for this. But now in Russia there are many other problems that require a quick solution.

There are two countries in the world when they say they are banning bitcoin, it actually means they are adopting bitcoin and just presenting to the world that they do not support cryptocurrencies.

Guess, which are those two countries, well it is China and Russia

Also, Russia is in an indirect war with the US and the western world, so they will never abandon bitcoin, rather if they need to abandon any currency, it will be the US dollar.

[zasad@]

Also, Russia is in an indirect war with the US and the western world, so they will never abandon bitcoin, rather if they need to abandon any currency, it will be the US dollar.

I would say differently. Someone in the world decided that the US should remain the world's military power and financial sector. The US problem is that their economy is starting to lose to the economies of China, India and other countries to the south. And if your economy is losing, then you are losing. Europe is good technology, Russia has a lot of resources, China, India, Africa, Indonesia have a lot of cheap labor, so the new world financial center will be there. The conflict between Russia and Ukraine has a strong impact on the European economy, large enterprises are starting to flee to the United States. There are wars in African countries where China invests, and it is not difficult for you to understand who the main beneficiary is. If I'm right, then in the next few years there will be a military conflict between China and Taiwan.

[virasog]

Also, Russia is in an indirect war with the US and the western world, so they will never abandon bitcoin, rather if they need to abandon any currency, it will be the US dollar.

I would say differently. Someone in the world decided that the US should remain the world's military power and financial sector. The US problem is that their economy is starting to lose to the economies of China, India and other countries to the south. And if your economy is losing, then you are losing. Europe is good technology, Russia has a lot of resources, China, India, Africa, Indonesia have a lot of cheap labor, so the new world financial center will be there. The conflict between Russia and Ukraine has a strong impact on the European economy, large enterprises are starting to flee to the United States. There are wars in African countries where China invests, and it is not difficult for you to understand who the main beneficiary is. If I'm right, then in the next few years there will be a military conflict between China and Taiwan.

This is what the US want the world to remain busy in their own problems and the US and their currency US dollar remain dominant in the world.

If you can read the script with a thought full mind, it is like the two emerging superpowers Russia and China to remain busy in the conflict with Ukraine and Taiwan.

Anyways this is not a political discussion thread, but I must say that the real threat to the US dollar will be inflation which is increasing in US making the currency de-value and adoption of bitcoin around the world.

[zasad@]

Also, Russia is in an indirect war with the US and the western world, so they will never abandon bitcoin, rather if they need to abandon any currency, it will be the US dollar.

I would say differently. Someone in the world decided that the US should remain the world's military power and financial sector. The US problem is that their economy is starting to lose to the economies of China, India and other countries to the south. And if your economy is losing, then you are losing. Europe is good technology, Russia has a lot of resources, China, India, Africa, Indonesia have a lot of cheap labor, so the new world financial center will be there. The conflict between Russia and Ukraine has a strong impact on the European economy, large enterprises are starting to flee to the United States. There are wars in African countries where China invests, and it is not difficult for you to understand who the main beneficiary is. If I'm right, then in the next few years there will be a military conflict between China and Taiwan.

This is what the US want the world to remain busy in their own problems and the US and their currency US dollar remain dominant in the world.

If you can read the script with a thought full mind, it is like the two emerging superpowers Russia and China to remain busy in the conflict with Ukraine and Taiwan.

Anyways this is not a political discussion thread, but I must say that the real threat to the US dollar will be inflation which is increasing in US making the currency de-value and adoption of bitcoin around the world.

I try to talk about economic aspects. The difference between the United States and all countries is that they can print dollars, so they are not in danger of a crisis. Try to imagine what will happen in other countries if there is a serious crisis in the USA.
Bitcoin, Ethereum are manipulated assets. Most of the bitcoin was bought and mined by very cunning manipulators, 72 million coins were printed in the ethereum.
If you want mass adoptions, then they will give it to you, and then the bankers will collapse the cryptocurrency rates on the exchanges and you yourself will demand controllable blockchains and CBDC.

[zasad@]

I haven’t written about Russia and cryptocurrencies for a long time. I will publish the latest data from Rosfinmonitoring (Federal Service for Financial Monitoring).
There are no laws. Cryptocurrency is property. Cryptocurrency cannot be used for payment, but this is not always respected.

"According to Rosfinmonitoring, the number of transactions with cryptocurrencies in Russia has tripled over the current year. The director of the department, Yuri Chikhanchin, announced this in an interview with the Izvestia newspaper.

“We see a significant number of transactions with cryptocurrency - their number has increased several times over the year. Thus, according to our data, the number of transactions with cryptocurrency in the nine months of this year exceeded 185 thousand (last year, during the same period, 60 thousand were recorded). As for the volume of operations, during the specified period it almost doubled,” said Chikhanchin."

More details on RBC:
https://www.rbc.ru/crypto/news/6541ed8b9a7947f7049ca77b

[Zoomic]

Meanwhile, The central bank is planning to issue its own digital rouble. The proposed ban includes crypto exchanges too.

Why is it that when any country wishes to introduce or impose her citizens with their CBDC, their first approach is to ban cryptocurrency? Aren't they aware that it is a bad approach? Nigerian government did it and they failed. Why do you need to fight bitcoin and cryptocurrency at large in order to promote your CBDC, knowing too well that it is this same citizens who know and use cryptocurrency that is going to adopt the CBDC.

In the case of Nigerian government, after banning crypto transactions, they launched their e-naira and went ahead to the market to preach to illiterate petty traders to start using e-naira for their trade . At a time they begin threatening them. Well, I think both cryptocurrency and CBDC can co-exist if the government wants it to be so. They should stop seeing cryptocurrency as a threat to CBDCs.

[safar1980]

Opinion of the first deputy head of the State Duma Committee on Information Policy, Information Technologies and Communications Anton Tkachev:

Of course, the growth of investors in cryptocurrency is growing. Last year, more than 13 million wallets were opened in the Russian Federation. We see media headlines, federal officials are talking about this, people are gradually starting to become interested. There is a natural growth, including due to sanctions. Erudition in the field of financial literacy and one’s financial assets has definitely increased among our population.

[pawel7777]

Opinion of the first deputy head of the State Duma Committee on Information Policy, Information Technologies and Communications Anton Tkachev:

Interesting, so according to the link it looks like there are going to be separate rules for individuals and for companies. The first ones will pretty much be banned from using crypto.
I've no idea how reliable this source and the translation are, but this part seems to be summing it up nicely:

The internal turnover of cryptocurrency will be completely prohibited. That is, we, ordinary citizens, will not be able to buy something for cryptocurrency in Russian stores. But Russian companies will have to gain access to the possibility of exchanging cryptocurrency. This was stated by the Central Bank that a specialized banking organization will be created that will conduct transactions. To date, the Ministry of Industry and Trade is developing a tool for conducting industrial mining activities, which will provide business with digital liquidity for cross-border payments. The interest of entrepreneurs in investing in this activity is growing exponent. Fear of investors and the state is leaving. Moreover, a digital ruble is also being made on the basis of this technology.

This kind of reads like they only want to use crypto as a means to bypass international restrictions.

[zasad@]

The internal turnover of cryptocurrency will be completely prohibited. That is, we, ordinary citizens, will not be able to buy something for cryptocurrency in Russian stores. But Russian companies will have to gain access to the possibility of exchanging cryptocurrency. This was stated by the Central Bank that a specialized banking organization will be created that will conduct transactions. To date, the Ministry of Industry and Trade is developing a tool for conducting industrial mining activities, which will provide business with digital liquidity for cross-border payments. The interest of entrepreneurs in investing in this activity is growing exponent. Fear of investors and the state is leaving. Moreover, a digital ruble is also being made on the basis of this technology.

This kind of reads like they only want to use crypto as a means to bypass international restrictions.

There is an industrial boom in Russia right now, factories are working in 3 shifts, just like in wartime. Trains with goods go to Russia from the south and east, and this works without cryptocurrencies. Russia has raw materials, energy, technology, so no sanctions will be effective. These sanctions only killed the profits of European companies, which were taken by Chinese companies

The Central Bank conducts its own policy and it is subordinated more to the IMF than to Russia, and the Central Bank of the Russian Federation has constant conflicts with the Ministry of Finance. The Ministry of Finance and the Central Bank have different goals.

As for citizens, then indeed, if you buy goods with cryptocurrency, then this is a violation of the law. But there are no prohibitions on buying and selling cryptocurrencies. That’s why I exchange cryptocurrencies for money and then buy goods and do not break any laws.

[pawel7777]

There is an industrial boom in Russia right now, factories are working in 3 shifts, just like in wartime. Trains with goods go to Russia from the south and east, and this works without cryptocurrencies. Russia has raw materials, energy, technology, so no sanctions will be effective.

Yeah, I remember, I think it was Biden, saying that disconnecting Russia from the Swift system was a "nuclear option" and they were hesitant to use it as it seems to harsh. When they've done it eventually it turned out not to be too effective at all.
I'm not up to date with all the EU restrictions, I know a few European countries opened bank accounts with Russian banks to be able to continue to trade, but I've no idea how that panned out.

As for citizens, then indeed, if you buy goods with cryptocurrency, then this is a violation of the law. But there are no prohibitions on buying and selling cryptocurrencies. That’s why I exchange cryptocurrencies for money and then buy goods and do not break any laws.

According to that article, private individuals are also not allowed to mine. But good to hear that people can still use exchanges freely. It's not all that bad then.

ps. I didn't realise you are Russian. Thanks for the first-hand info.

[zasad@]

There is an industrial boom in Russia right now, factories are working in 3 shifts, just like in wartime. Trains with goods go to Russia from the south and east, and this works without cryptocurrencies. Russia has raw materials, energy, technology, so no sanctions will be effective.

Yeah, I remember, I think it was Biden, saying that disconnecting Russia from the Swift system was a "nuclear option" and they were hesitant to use it as it seems to harsh. When they've done it eventually it turned out not to be too effective at all.
I'm not up to date with all the EU restrictions, I know a few European countries opened bank accounts with Russian banks to be able to continue to trade, but I've no idea how that panned out.

As for citizens, then indeed, if you buy goods with cryptocurrency, then this is a violation of the law. But there are no prohibitions on buying and selling cryptocurrencies. That’s why I exchange cryptocurrencies for money and then buy goods and do not break any laws.

According to that article, private individuals are also not allowed to mine. But good to hear that people can still use exchanges freely. It's not all that bad then.

ps. I didn't realise you are Russian. Thanks for the first-hand info.

Not all banks in Russia are disconnected from the Swift system. I read in the news that some banks are working because it is impossible in the modern world to close all trade instantly, but for individuals Swift transfers are practically closed, so everyone I know uses cryptocurrencies.

I have not seen any laws banning mining, and the draft laws do not have legal force.

[philipma1957]

The internal turnover of cryptocurrency will be completely prohibited. That is, we, ordinary citizens, will not be able to buy something for cryptocurrency in Russian stores. But Russian companies will have to gain access to the possibility of exchanging cryptocurrency. This was stated by the Central Bank that a specialized banking organization will be created that will conduct transactions. To date, the Ministry of Industry and Trade is developing a tool for conducting industrial mining activities, which will provide business with digital liquidity for cross-border payments. The interest of entrepreneurs in investing in this activity is growing exponent. Fear of investors and the state is leaving. Moreover, a digital ruble is also being made on the basis of this technology.

This kind of reads like they only want to use crypto as a means to bypass international restrictions.

There is an industrial boom in Russia right now, factories are working in 3 shifts, just like in wartime. Trains with goods go to Russia from the south and east, and this works without cryptocurrencies. Russia has raw materials, energy, technology, so no sanctions will be effective. These sanctions only killed the profits of European companies, which were taken by Chinese companies

The Central Bank conducts its own policy and it is subordinated more to the IMF than to Russia, and the Central Bank of the Russian Federation has constant conflicts with the Ministry of Finance. The Ministry of Finance and the Central Bank have different goals.

As for citizens, then indeed, if you buy goods with cryptocurrency, then this is a violation of the law. But there are no prohibitions on buying and selling cryptocurrencies. That’s why I exchange cryptocurrencies for money and then buy goods and do not break any laws.

So for practical purposes the ban is not an issue. Just cash into Rubles and buy what you want. Clever work around.

Of course this will mean retaliation form the west against its people for using crypto.

IE USA will tell me my mine helps support Russia as I help BTC LTC and Doge. 

Ahh earth such a nice place.  To the day we stop the wars. (never) as you say you are now having lots of work for Russians. oh well.

[zasad@]

The internal turnover of cryptocurrency will be completely prohibited. That is, we, ordinary citizens, will not be able to buy something for cryptocurrency in Russian stores. But Russian companies will have to gain access to the possibility of exchanging cryptocurrency. This was stated by the Central Bank that a specialized banking organization will be created that will conduct transactions. To date, the Ministry of Industry and Trade is developing a tool for conducting industrial mining activities, which will provide business with digital liquidity for cross-border payments. The interest of entrepreneurs in investing in this activity is growing exponent. Fear of investors and the state is leaving. Moreover, a digital ruble is also being made on the basis of this technology.

This kind of reads like they only want to use crypto as a means to bypass international restrictions.

There is an industrial boom in Russia right now, factories are working in 3 shifts, just like in wartime. Trains with goods go to Russia from the south and east, and this works without cryptocurrencies. Russia has raw materials, energy, technology, so no sanctions will be effective. These sanctions only killed the profits of European companies, which were taken by Chinese companies

The Central Bank conducts its own policy and it is subordinated more to the IMF than to Russia, and the Central Bank of the Russian Federation has constant conflicts with the Ministry of Finance. The Ministry of Finance and the Central Bank have different goals.

As for citizens, then indeed, if you buy goods with cryptocurrency, then this is a violation of the law. But there are no prohibitions on buying and selling cryptocurrencies. That’s why I exchange cryptocurrencies for money and then buy goods and do not break any laws.

So for practical purposes the ban is not an issue. Just cash into Rubles and buy what you want. Clever work around.

Of course this will mean retaliation form the west against its people for using crypto.

IE USA will tell me my mine helps support Russia as I help BTC LTC and Doge. 

Ahh earth such a nice place.  To the day we stop the wars. (never) as you say you are now having lots of work for Russians. oh well.

To be honest, I'm not afraid to buy goods with cryptocurrency and break the law. This law exists, but it doesn't work. Another problem here is security. You should not conduct transactions with cryptocurrencies with strangers, because then you can be robbed, and the police will not look for cryptocurrencies. It is safer to make transactions in rubles. And if you need anonymity or a quick way to transfer money to a close relative abroad, then cryptocurrencies can help.

Another observation of mine is that cryptocurrencies do not play a big role in circumventing sanctions. Most of the businessmen I know who have production didn’t even use cryptocurrencies.
Cryptocurrencies are mainly used to escape from Russia. A businessman sells his property, exchanges it for cryptocurrencies and leaves for another country.

There is an opinion that there was an unspoken instruction from the top leadership to allow everyone dissatisfied with the country’s politics to leave. A completely humane agreement and a good solution will get rid of a large and dissatisfied mass of people. Many will not be able to return back, because their vacancies and businesses will be taken by other people.

[zasad@]

https://www.interfax.ru/business/957196
Central Bank may be allowed to start piloting external settlements in cryptocurrency from autumn

"Moscow. 22 April. INTERFAX.RU - State Duma deputies have finalised and introduced a new version of a bill that allows the Central Bank to start creating a pilot platform for the use of cryptocurrencies in international settlements from 1 September 2024. The regulator will have to coordinate a number of steps during the experiment with Rosfinmonitoring, the Federal Security Service and the Ministry of Finance."
___
As a comment I can only say one thing that nothing is clear from this news and the experiments in Russia may last for a very long time. It is still unclear what will be allowed, and most likely it will be digital financial assets under the control of banks that have nothing to do with cryptocurrency.