Russia’s Central Bank to Ban on Crypto Mining and Trading

Russia, one of the world’s most influential countries in the field of cryptocurrency, has announced its intention to regulate these cryptocurrencies. The Central Bank of Russia recently proposed a ban on mining and trading in cryptocurrencies within its borders. List the threats that may affect the financial stability and well-being of citizens.

The global cryptocurrency craze has gone too far. Governments fear how private companies operate and are highly volatile Cryptocurrency It could challenge its control of financial systems with all those crazy price swings from Asia to America.

Russia has long opposed cryptocurrencies, arguing that they can be used to launder money or finance terrorism. So in 2020, Russia granted legal status to these coins but banned their use as payment methods. The measure was that the Russian ruble could not keep up with inflation rates at this time (about 13%).

The Russian Central Bank issued a report warning of the risks associated with cryptocurrency speculation. The bank’s concerns focus on overheated markets and citizens. In addition, potential crypto bubbles could cause major disruptions to financial stability around the world.

The recent ban on cryptocurrencies in Russia, including exchanges, has grabbed the headlines. However, crypto exchange Binance told Reuters She was committed to working with regulators and hoped that the release of the report would open a dialogue among central bank officials about protecting the interests of Russian crypto users as well.

Bitcoin price
Source: Tradingview.com

The head of the Russian Central Bank also said that they do not plan to implement any restrictions related to cryptocurrency ownership.

According to estimates, the annual volume of crypto transactions in Russia is approximately $5.00 billion.

Does Russia follow China?

The Central Bank of Russia has announced that it will cooperate with regulators around the world to collect information about the operations of a Russian customer from cryptocurrency exchanges. Pointing to previous examples such as China, which allows local governments to strictly control virtual currency activities despite criticism against said measures.

China has intensified its crackdown on cryptocurrencies in recent months. In September, they banned all crypto and mining transactions with a blanket ban. hit ban Bitcoin Hard currencies and other major currencies are forcing investors out of the market.

Cryptocurrency mining banned due to high energy consumption

Russia, the third largest player in the world Bitcoin mining Behind America and Kazakhstan, it may see an exodus of miners due to fears of tightening regulations after the unrest earlier this month.

The Russian Central Bank said powerful computers mine Bitcoin and other cryptocurrencies by competing vigorously with each other to solve complex mathematical puzzles. The mining process uses huge amounts of electricity generated from fossil fuels or nuclear physics.

“To save energy resources, we need to propose a ban on cryptocurrency mining,” the bank authorities said.

                Featured image from Pixabay, chart from TradingView.com

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