Russia Proposes Ban on Crypto

Russia's central bank has proposed a ban on the use and mining of cryptocurrencies on its soil. Citing the speculative demand that drives much of crypto’s gains as a dangerous threat, the central bank wants to crack down on almost all crypto activities. 

An official policy proposal has contended that crypto activities threaten the financial stability and general wellbeing of Russia’s citizens. It went on to say the country’s monetary policy sovereignty would also be in danger.

This stance is not a new one from Russia, which has long been vocal about its concerns over crypto being used to launder money and finance terrorism. As of today, cryptos have legal status in Russia, but they are banned as a means of payment. The proposals would see financial institutions barred from carrying out any transactions with cryptocurrencies. 

What does this mean for me?

The validity of cryptocurrencies has come under pressure from many fronts in recent times. With China leading the way, and now Russia threatening to follow suit, countries are concerned about these privately-controlled currencies undermining the old order of money.

Russia’s language has been damning, even going as far as to call the crypto world a financial pyramid that could cause bubbles whose decline could endanger entire societies.

As a crypto trader, these ups and downs will be part of the sometimes-difficult journey toward mainstream adoption. While some countries demonize the new payment form, it continues to grow.