News Russia Says It Will Ban Cryptocurrency Exchanges

Russia Says It Will Ban Cryptocurrency Exchanges


- Advertisment -

Russia to ban cryptocurrency exchanges

Sergei Shvetsov, First Deputy Chairman of the Central Bank of Russia, said he plans to ban websites that offer cryptocurrencies inside the country.

These websites — referred to as cryptocurrency exchange platforms — allow users to buy and sell cryptocurrency by exchanging them to regular fiat currency, such as Russian rubles, US dollars, Euros, and other.

Money laundering, market speculation, price instability

Just like most countries around the world, Russia never looked favorably on cryptocurrencies and had several attempts to block various Bitcoin exchange platforms back in 2015, later overturned by local courts.

Financial officials often decried the lack of any cryptocurrency regulations that have allowed miscreants access to a method of laundering criminal proceeds or bypassing taxation laws.

“We cannot stand aside. We cannot give direct and easy access to such dubious instruments for investors,” Shvetsov said about cryptocurrencies in general.

He also likened the entire cryptocurrency market to a high-risk pyramid scheme, citing Bitcoin’s huge price spike from the past year that has fueled market price speculation.

“Even the owners of large Bitcoin exchanges say there is not much money in the system. This tool is quite low-liquid, it’s almost impossible to get out of it,” Shvetsov said.

Nonetheless, Shvetsov said he perfectly understands why people are attracted to cryptocurrencies, mainly due to the high return in comparison to the low effort put into generating profits.

All in all, speculation, instability, the threat of money laundering, and lack of cash assets is usually a bad omen for investors, and especially regulators. This is why Svetsov said he’s planning to ban cryptocurrency exchanges somewhere in the future.

Regulation expected sometime next year

If Shvetsov’s plan goes through, this means that the only way Russians could earn Bitcoin and other cryptocurrencies is to mine it themselves, and then spend it at services that accept Bitcoin payments, but without the possibility of ever exchanging it into fiat currency — or at least not in the country.

Shvetsov made these statements earlier today at the Russian Derivatives Market 12th International Forum, according to Interfax, a Russian news agency. He didn’t provide a timeline for implementing the ban on cryptocurrency exchanges.

Back in August, Russia’s Deputy Finance Minister Alexei Moiseev said the state would most likely prepare legislation to regulate Bitcoin somewhere in 2018.

In a report released today by Russian cyber-security firm Group-IB, cryptocurrency exchanges, banks, and power stations were deemed the top three most likely targets for hackers in the coming future.

Source link


Please enter your comment!
Please enter your name here

Latest news

Make Fast and Secure Trades Using is a Cryptocurrency trading platform that allows users to buy and sell their Cryptocurrency in a...

Network Security Using Cryptography: Everything you need to know

This article will describe what is Network Security Using Cryptography and everything you need to know before...

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came under new ownership in December 2019. Since taking over the exchange,...

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when dealing with a decentralized and anonymous currency, but does bitcoin...
- Advertisement -Russia Says It Will Ban Cryptocurrency Exchanges

Crypto can’t thrive in the real world – but stablecoins can

We can safely say that the hype about cryptocurrencies is pretty much over. The claims of Bitcoin...

How to double your crypto

Most of us have a small gambler deep inside our souls. We love to feel the thrill...

Must read

Make Fast and Secure Trades Using is a Cryptocurrency trading platform that...
- Advertisement -Russia Says It Will Ban Cryptocurrency ExchangesRussia Says It Will Ban Cryptocurrency Exchanges

You might also likeRELATED
Recommended to you