Russians are going to ban exchange of crypto currency. Just 3 years after China, Russia will pass a bill in the spring to ban the buying and selling of cryptography on their soil.
The world of cryptography has seen an explosion in the value of Bitcoin in 2017 and many developments around the blockchain. Many start-ups have been riding the wave and are betting on the emergence of highly volatile cryptography and the blockchain, which offers applications in many fields of activity.
In South Korea, the government has just passed an amendment allowing the holding and entry of cryptomony into their economy.
Other countries are more reluctant and wish to slow down the development and use of blockchain and cryptomoney because they believe that it is too obscure a transaction because it is not controlled and regulated by the central banks.
These countries advocate the protection of citizens and financial markets, while others simply denigrate cryptomoney by associating it with illegal networks such as drugs, prostitution, the sale of arms or any other illegal activity.
For Vladimir Putin's government, both arguments are good to take and it seeks purely and simply to eradicate cryptomoney on its soil, making the acquisition and exchange of cryptomoney prohibited.
This news caused an immediate drop in prices on the crypto markets and its devastating effects have left their mark. For example, the price of Bitcoin, which has lost more than 5 value points in the last 24 hours. Bitcoin and the other cryptomonies have already taken the brunt of the coronavirus, losing more than a third of their value since the pandemic beginning.
India's decision to widely allow cryptomaking in their country gave cryptomakers a reprieve last week with a significant rise in prices. Unfortunately, the Russian government's announcement quickly undermined this positive market surge which was only short-lived and is once again pulling prices down.
The watchword is to prevent crime and protect people.
The director of the Russian Central Bank spoke about funds for financial stability, consumer protection and the laundering of money from criminal activities.
The draft law provides for a ban on the possession and exchange of cryptommonaie but does not surprise experts and the general public. Indeed, China has already launched a similar project in 2017.