A piece of news with seismic consequences in the crypto galaxy
: the Russian central bank proposes a complete ban on mining activities. However, Russia is currently the third largest crypto miner in the world…
Following the announcement, bitcoin collapsed to 33,000 euros and dragged the other currencies into this downtrend.
The Central Bank of Russia proposes the end of mining on its territory
The report more or less confirms what we already knew: the Russian government is not really a friend of bitcoin and other digital currencies. The pages of a recently published report by the country strongly suggest a ban on the circulation, mining and exchange of cryptocurrencies on Russian territory. If so far nothing has been acted, it will not take more than a year to make this decision effective.
Russian central bank head Elvira Nabiullina has long considered bitcoin to be a problem to be eliminated, and the FSB (Federal Security Service of the Russian Federation) now agrees with her view. According to the institution, cryptocurrencies are vectors for money laundering and criminal activities. The published text also proposes increased monitoring of the funds of citizens involved in the cryptocurrency business. People with more than 5 million euros in crypto will thus be particularly monitored.
For an ordinary citizen, this ban will make it impossible to buy crypto-currencies by bank transfer, and mining activities will be repressed. However, it will remain impossible to control currency exchanges in Peer 2 Peer. The government does not intend to prevent trading on foreign platforms, given the difficulty of controlling transaction flows.
Direct consequence: bitcoin plunges?
Russia’s decision, if implemented, promises to be less harsh than that of the Chinese government, which has banned mining on its territory. The big players in the crypto world, Binance in the lead, want to bend to the game of negotiations with the Russian government to defend their interests.
The consequences of this proposed ban seem to have been immediate: the value of bitcoin indeed fell from 37,000 to 33,000 euros on the night of January 20. Other digital currencies were also affected, with ETH also losing 400 euros today. In general, the most popular cryptocurrencies had a sluggish start to 2022 with downward trends…
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Source: WccFtech
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