Russia wants to ban cryptocurrency trading and mining

midian182

Posts: 7,782   +80
Staff member
What just happened? Russia has proposed following China in coming down hard on cryptocurrency. The country’s central bank has suggested banning the use and mining of crypto within its territories over concerns it could damage Russia’s financial system and environment.

Elizaveta Danilova, the Bank of Russia's Financial Stability Department director, presented the ‘Cryptocurrencies: trends, risks, measures’ report during an online press conference.

The report states that cryptocurrency bears many similarities to a pyramid scheme and is often used in criminal activities. It also undermines monetary policy sovereignty by offering citizens a way to take their money out of the national economy.

The report goes on to say that crypto mining is damaging to Russia’s green agenda, a risk to its energy supply, and can worsen the adverse effects of cryptocurrency’s spread.

“Potential financial stability risks associated with cryptocurrencies are much higher for emerging markets, including in Russia,” the central bank said.

Making payments using crypto is already banned in Russia, and mutual funds are prohibited from investing in it. Yet, the country is still the world’s third-largest crypto mining nation behind the US and Kazakhstan.

While the bank does not propose making the owning of cryptocurrency illegal, it wants harsher punishments for those who break the current rules and is asking for new laws to ban crypto’s use. As for mining, the report states that the "optimal solution" would be to ban it altogether in Russia.

It should also be noted that people with offshore exchange accounts would still be able to trade crypto, and any ban first needs to be passed by law.

Bitcoin’s price has fallen from around $43,200 to just under $39,000 in the last 24 hours.

Permalink to story.

 

dangh

Posts: 507   +773
Happy here, in Moscow. The end of this evil is approaching more and more.
I just hope you're not talking about Ukraine invasion;)

But on serious note, this is a welcome step, but probably other countries won't follow. Would be good to stop this baloon, but with dawn of NFT it is probably already too late.
 

dangh

Posts: 507   +773
Russia's motives are simple and clear. In a country where absolute control is required, anything outside of regular currency control is not tolerable and the moment Putin cannot benefit from it, it shall come to an end.
Yes, but tbh it is same across the world...
 

Achaios

Posts: 355   +969
I just hope you're not talking about Ukraine invasion;)

What invasion man, that's just baloney, if Russia had wanted to invade they'd done years ago when nobody was watchin' and b4 NATO take concrete steps to hasten the transfer of troops & equipment to Ukraine, b/c they really have you now for real.

As for Ukraine herself, AFAIAC the democratically elected head of the govt was toppled by an armed paramilitary organization connected to the mafia who now pose as the legit govt, supported by the West.

Anyway I look at it, I can't possibly fault Russia in any way.
 

McMurdeR

Posts: 484   +609
To be fair, I wouldn't have as much of issue with Crypto if it weren't for mining. This is the activity that should be banned on the basis of environmental impact alone. And that's before we even talk about gaming ;)

At least the Russian's are honest enough to openly talk about monetary sovereignty, which I'd imagine is a much bigger issue for them than the environment or criminality.

 

Geralt

Posts: 1,081   +1,646
I just hope you're not talking about Ukraine invasion;)

But on serious note, this is a welcome step, but probably other countries won't follow. Would be good to stop this baloon, but with dawn of NFT it is probably already too late.
I am worried about that war here. I am a foreigner and have nothing to do with all that craziness.
 

Nobina

Posts: 3,730   +4,104
Honestly, most people here don't like crypto mostly because of GPU shortages and second reason is it is using tons of energy, so, selfish reasons.

Since crypto is supposedly difficult to track and control by the government it can be great in some cases. Maybe it's stupid to be against something that can be very important in future just because we want to play games at high resolutions, but I'm not smart to predict the future.

Every government will try to ban something they can't control, Russia definetely won't be the outlier here.
 

Theinsanegamer

Posts: 3,317   +5,508
Excellent decision Comrades!
OOF, what happened to the free market comrade?
Any financially sane country would ban it, authoritarian or not.
No, any sane country would TAX it. Why give up such a valuable revenue stream?
Honestly, most people here don't like crypto mostly because of GPU shortages and second reason is it is using tons of energy, so, selfish reasons.
Buying a processor made with toxic materials by slave labor in china to play your newest bing bing wahoo is pretty selfish.

Using electricity should be a problem for enviromentalists anyway, given how hard they push to electrify everything to the point california's grid collapses again.
 

letsgoiowa

Posts: 62   +121
It's funny because every authoritarian regime fears crypto, which should indicate it's a *great* thing to have. Can't control it, can't stop the signal.

I do think PoW poses the biggest threat to Bitcoin with its centrally-developed ASICs, but BTC maxis won't listen to sense. It makes it all that much easier to detect, regulate, and attack the network by taking down mining. Can't really detect a raspberry pi running an Eth node or some other proof of stake chain.
Proof of stake or at least highly distributed proof of work on CPUs and actual privacy like Monero is the future. BTC deserves to fall, as it has no good qualities other than being the first.
 

Destrukshawn

Posts: 21   +8
Russia's motives are simple and clear. In a country where absolute control is required, anything outside of regular currency control is not tolerable and the moment Putin cannot benefit from it, it shall come to an end.
Finally, someone with more than just half a ****ing brain. This is exactly the truth. Media's explanation will be wrong, Uncle Al is right, I personally confirm this to be true!
 

Shadowboxer

Posts: 2,074   +1,650
Take note how its all the authoritarian, non-democratic states that are banning crypto currency first. Its because governments cant control crypto. Although you can make the argument that the Russians werent doing a very good job controlling the Ruble tbf.

If Cryptos are allowed to mature, stabilise and became mainstream, its the general population who would benefit. Governments wouldnt be able to just print more money to pay for things. There are so many examples in history and present day where governments or dictators have abused the currency of a country and effectively destroyed it which in turn ruins the lives of millions. Crypto should be insurance against individuals from being able to ruin it.

https://www.investopedia.com/articles/personal-finance/122915/worst-hyperinflations-history.asp

I find it sickening that people want it banned. But then I am a libertarian...
 

emmzo

Posts: 581   +718
No, any sane country would TAX it. Why give up such a valuable revenue stream?

Because you don`t want your people savings into other currencies. You can tax it, sure, more money short term, but you would break your currency in the process long term.
 

GamerNerves

Posts: 170   +106
Take note how its all the authoritarian, non-democratic states that are banning crypto currency first. Its because governments cant control crypto. Although you can make the argument that the Russians werent doing a very good job controlling the Ruble tbf.

If Cryptos are allowed to mature, stabilise and became mainstream, its the general population who would benefit. Governments wouldnt be able to just print more money to pay for things. There are so many examples in history and present day where governments or dictators have abused the currency of a country and effectively destroyed it which in turn ruins the lives of millions. Crypto should be insurance against individuals from being able to ruin it.

https://www.investopedia.com/articles/personal-finance/122915/worst-hyperinflations-history.asp

I find it sickening that people want it banned. But then I am a libertarian...

Authoritarian governments just have the ability to rush new laws if they wish so, which is effective sometimes in a good way, but most often they try to protect their own power or the power of the most wealthiest people in their country by this ability. Truly democratic countries are at this point following the situation, watching what happens for example in Russia concerning crypto, perhaps seeing the minor positive effects of crypto as well like, let's say, people in Afganistan who own crypto not being as dependant of the unstable system there, but in the end the longer crypto remains, criminal activity will utilize it more and more, because they want a currency that is not controlled and they will fool their legitimate business partners by paying their actions with this currency. Word 'fraud' is all over crypto, but of course it's not completely black and white, but unpredictable for sure.

If you would consider this subject more throughoutly, you would understand what are the risks involved, so there is no reason to be "sickened" by moves against crypto, but then, are you after some crypto profits yourself or what? Taking risks is allowed, even for governments, but your language just speaks either ignorance or folly.
 

Shadowboxer

Posts: 2,074   +1,650
Authoritarian governments just have the ability to rush new laws if they wish so, which is effective sometimes in a good way, but most often they try to protect their own power or the power of the most wealthiest people in their country by this ability. Truly democratic countries are at this point following the situation, watching what happens for example in Russia concerning crypto, perhaps seeing the minor positive effects of crypto as well like, let's say, people in Afganistan who own crypto not being as dependant of the unstable system there, but in the end the longer crypto remains, criminal activity will utilize it more and more, because they want a currency that is not controlled and they will fool their legitimate business partners by paying their actions with this currency. Word 'fraud' is all over crypto, but of course it's not completely black and white, but unpredictable for sure.

If you would consider this subject more throughoutly, you would understand what are the risks involved, so there is no reason to be "sickened" by moves against crypto, but then, are you after some crypto profits yourself or what? Taking risks is allowed, even for governments, but your language just speaks either ignorance or folly.
I would suggest that it is yourself who ought to consider this subject more thoroughly as you have shown a strong lack of knowledge or "ignorance" as you put it. Criminals use crypto because its untracked, unregulated. But if governments were to embrace the use of crypto criminals could no longer use it as you have suggested. Its absurd to believe this couldnt happen. Our governments dont track cash in western societies. But they do require you to do a tax return.

If you like feel free to DM me and I will happily educate you on this subject as you are clearly very naive.
 

kiwigraeme

Posts: 985   +739
Russia does what Russia wants . Putin is already one of the richest men in the world - Do you seriously think they do not know who all the big players are, who all the hacking groups are ?
Do you not remember Billionaires being put in prison - to bring into line and pay their dues .
Do you think Bitcoin can evade scrutiny - when there is a bitchain . yes it can go into wash cycles .
China and Russia are just doing what other countries will do in a matter of time .
When the effects of Climate change continue to ramp up- Images of Vietnam oops Grandmas dying from heat waves , burnt /starving animals , firestorms, floods .
Yes we will have those invested in making money coming in here telling us - Bitcoin is 100% a cause for good - fighting against The Man , crime , oppression . Absolutely nothing do do with their greed and desire for a quick buck . That they are the good of this world.

I keep saying it Covid is a gnat compared to Climate Change - even then with mosquitos/disease with increase - warm , oxygen less water harming and killing.
Nearly every year is hotter than last , 50 ...100 years you do the math.
If you are a HAVE , old and selfish -maybe you don't care about plants, grandchildren, animals - but most of us do . Unless crypto gets rid of energy use - it will be banned Corporates have no loyalty to it - if people rise up.
The only thing stopping democratic countries is they don't want to appear fascist - when the people speak and countries like maybe Sweden start banning it - it will be domino effect .
BC won't hit a million - it's a pump and dump controlled entirely by small big holders - they like the roller coaster - they help make it - the start the buying again at the bottom , they join the selling at the top . Ride it at your peril - they know it will die - they have made millions every cycle - One day one will get nervous and really try to cash out - that will be interesting - they a cartel based on greed - not loyalty - or caring
 

timljh

Posts: 43   +5
Glad to see more and more countries banning mining.
Hopefully we can end this plague soon enough.
It's funny there are still people who think the shortage is due to mining. It is a global silicon shortage that affects every electronics, gpu is just one of it.