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Russia to ban mining and use of crypto currencies

Following the announcement, bitcoin collapses to 33,000 euros and drags other currencies into this downward trend.

Russia’s central bank proposes an end to mining on its territory

The report more or less confirms what we already knew: the Russian government is not exactly a friend of bitcoin and other digital currencies. The pages of a recently published report from the country strongly suggest a ban on the circulation, mining and exchange of crypto-currencies on Russian territory. While nothing has been enacted so far, it won’t take more than a year to make this decision effective.

The head of the Russian central bank, Elvira Nabiullina, has long considered bitcoin a problem to be eliminated, and the FSB (Federal Security Service of the Russian Federation) now agrees with her view. According to the institution, crypto-currencies are vectors for money laundering and criminal activity. The published text also proposes increased monitoring of the funds of citizens involved in the crypto-currency business. People with more than 5 million euros in crypto will thus be particularly monitored.

For an average citizen, this ban will make it impossible to buy crypto-currencies by bank transfer, and mining activities will be repressed. However, it will still be impossible to control Peer 2 Peer currency exchanges. The government does not intend to prevent trading on foreign platforms, given the difficulty of controlling transactional flows.

Russian central bank proposes banning cryptocurrencies, crypto mining |  Arab News

Direct consequence: bitcoin plunges?

Russia’s decision, if implemented, looks less harsh than that of the Chinese government, which banned mining on its territory . The big players in the crypto world, led by Binance, are thus willing to play 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 has indeed fallen from 37,000 to 33,000 euros in the night of January 20. Other digital currencies were also affected, with ETH also losing 400 euros that day. In general, the most popular crypto-currencies have had a sluggish start to 2022 with downward trends…

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