According to Anatoly Aksakov, Chairman of Russia’s State Duma Committee on the Financial Market, the nation will put a blanket ban on the general circulation of cryptocurrency assets. The motive behind the move is to reinforce the Ruble’s dominance and control the crypto ecosystem.
Aksakov stated, ‘Digital financial assets issued in Russian jurisdiction, and digital rubles will be allowed. The need for a ban is due to the fact that today cryptocurrency – is a quasi-currency that replaces the ruble in the country. But only the Russian ruble fulfills the mission of the monetary unit, so this decision has been made.‘
However, the bill has exemptions for cryptocurrency miners and Central Bank-sponsored projects. According to the data from Statista, Russian miners produce nearly $2.60 billion in liquidity for foreign trade settlements.
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The development has sparked an intense debate within the nation. Artem Kiryanov, Deputy Chairman of the State Duma Committee on Economic Policy, highlighted the importance of proper regulations.
Kiryanov stated, ‘The regulation of cryptocurrency should be prescribed in the digital code, which would clearly spell out the conceptual apparatus and common judicial law enforcement practice‘
Will the cryptocurrency market crash following a Russian ban?
The cryptocurrency market has seen its fair share of ups and downs. Previously China put a blanket ban on crypto and mining activities, leading to a market-wide plummet. However, during the Chinese ban, a majority of the global mining force was located in China. The ban led to amass exodus of miners from the country, which also had adverse effects on the market.
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However, Russia does not boast a similar mining population. Therefore, the impact on the market may be minimal. However, it should be noted the cryptocurrency market has faced another correction this week, with Bitcoin (BTC) falling 2.6% in the daily charts and 6.2% in the weekly charts. The correction could be due to Russia’s latest move, coupled with rising geopolitical tensions.
