Russia to impose a ban on Cryptocurrency Trading and Mining

Russia to impose ban on cryptocurrency

Russia’s Central banks make a move against Cryptocurrency. Russia decides to impose a ban on cryptocurrency trading and mining. Pavel Durov, the founder of the telegram, says that “Russia’s Crypto ban might drive out IT professionals and no developed countries ban cryptocurrencies.” 

The third-largest Crypto mining nation outlaws Crypto trading and mining.

Russia’s move against Cryptocurrency protects its monetary policies’ financial stability. However, the Russian Government gave Cryptocurrency a legal status in 2020. The countries views on Cryptocurrency are no secret.

The ban imposed on Cryptocurrency as a means of payment is solely the aftermath of Russian Central Banks saying that “Crypto trading and mining can help finance terrorism and money laundering.”

According to the Russian Centra Banks, “rapid growth in Crypto mining and trading can threaten the country’s financial stability and its citizens.” 

Nevertheless, to back that statement, Russia decides to impose a ban on financial institutions to use Cryptocurrency as a means of payment. Russian Central Banks seems to be developing mechanisms to block Crypto-based transactions.

A statement from Elizaveta Danilova, head of the Russian Central bank’s financial stability department, states that “We can not foresee restrictions on owning cryptocurrency.”

Perhaps, according to Russian Central banks, a ban on Cryptocurrency as a means of payment is a move long overdue.

However, it is no secret that Russia is always there to argue against Cryptocurrency over fiat currencies. 

Is Russia’s move to impose a ban on Cryptocurrency influenced by China?

We are all aware of China’s intense move against Cryptocurrency. In the form of a complete ban on Crypto trading and mining in September 2021. 

Moreover, when the Russian Government decides to curb all cryptocurrency transactions, the ban is followed by collecting information on Russian Crypto clients. 

Furthermore, such a bold move by Russian Central Banks points towards measures taken against Cryptocurrency by countries like China. 

Although a statement issued by Elizaveta Danilova states the opposite, “For now there are no plans to ban Cryptocurrencies like china and the approach we have proposed will suffice.” 

Joseph Edward, head of financial Strategy from Solrise Group’s Crypto Firm, says that “no one outside Russia would be losing sleep over it.” 

Perhaps, Russia’s move to impose a ban on cryptocurrency trading and mining is not a step in China’s Shadow. 

Pavel Durov’s strong opinions against the Bank of Russia on the Crypto ban

According to Pavel Durov, founder of the telegram, Russia’s move to ban crypto trading and mining might destroy various high-tech sectors. 

The ban imposed on Cryptocurrency will drive IT specialists out of the country. 

Furthermore, in a telegram post, Durov says, “No developed country bans Cryptocurrency; such a ban will slow down the developments in blockchain technologies. 

After all, these technologies enhance the efficiency of human activities from finance to arts.”

Wrapping Up,

Russia begins its new year by imposing a ban on Cryptocurrency trading and mining. 

However, the regulations proposed by Russian central banks will not apply to assets held abroad, which allows Russians to be still able to trade in Cryptocurrency. 

Although, the Central Bank of Russia might move towards collecting information of Russian clients in Crypto trading and mining.

Also Read: Bitcoin market cap drops 11% in 24 hours

Johannah is a passionate traveler. She is seeking remote places across India and exploring the benefits of being a Nomad. She has completed her bachelor's in Psychology Hons and diploma in Graphology. Being able to write helps her to share her experiences and be independent to travel anywhere.


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