Following a recommendation from its security services, the Russian government is taking steps to outlaw any trace of crypto within its borders.
Following in the footsteps of China (the other major global player who banned the trading and mining of crypto last year) the world’s second most famous authoritarian regime announced that cryptocurrencies were posing a risk to its internal security, energy grids, and economy.
The announcements came this week from the Russian Ministry of Finances.
The Russian economy, running internally on the Russian Rouble (a non-reserve currency) has been seeing a tremendous decline since Russia’s annexation of Crimea in 2014. The finance ministry of the Russian Federation announced it was looking into the proceeds to outlaw cryptocurrencies due to their frequent use in tax evasion and fuelling crime as well as operations of outlets viewed as dissidents amid an ongoing crackdown on opposition.
Crypto has been a primary driving factor behind media that remains critical of the Russian state. This could easily change now...
If (and it is very likely to) the Russians move to ban crypto, anyone found mining or trading it is likely to face serious criminal charges. The number of countries that have banned or seriously restricted the flow of crypto has almost doubled since 2018, currently numbering at 51 nation-states.
Russia is one of the biggest hubs for crypto right now, ranking 2nd biggest in terms of trading and 3rd in mining. If executed this ban would likely devastate the cryptocurrency market.
The recent unrest and subsequent internet blackouts in Kazakhstan, a much smaller player in the Crypto market, led to serious ramifications for the crypto market. A ban in Russia would dwarf that damage...
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