One would think that because the markets are red, there could be no reason to further the dips. Well, Russia has found a reason to.
Reasons for Russia Banning Cryptocurrency
1. Russia considers cryptocurrency a threat to the Russian economy.
2. Russia considers cryptocurrencies a fraud.
3. Russia cannot regulate cryptocurrency; hence considers it a security threat.
4. Russia finds it impossible to tax cryptocurrency.
The Ban: First Reading of the Bill
In early January 2022, Russia proposed a bill to ban cryptocurrency. This caused a bear market, with Bitcoin reaching $35,000.
In May 2022, Elvira Nabiullina, Russia's Central Bank Governor, said that the bank could not accept cryptocurrency investments even though they make up to $5 billion in transactions a year. He further stated a proposal to ban mining and trading.
Yesterday, at the time of writing this article, Tuesday 16th June 2022, Russia approved the first reading of the bill to ban cryptocurrency. The bill's sponsor is the Financial Markets Committee of the State of Duma Anatoly Aksakov.
Propositions of the Bill
"To prohibit payments using 'Digital Financial Actives' (DFA) for payment of goods and services."
Nations Banning Cryptocurrency
Cryptocurrency analysts say that nations like Russia and China ban cryptocurrency from gaining control. Many countries are looking to control the cryptocurrency markets, but they fail to know how to. Last year, a genius proposed that China's ban was to sell old crypto mining machines and gain market control. The key reason behind Russia's ban is unknown for now. However, cryptos are here to stay. Cryptocurrency is the future.
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