On February 21st, Russia’s Finance Ministry proposed banning cryptocurrencies and crypto mining. The minister submitted legislation for digital currencies. He believes that cryptocurrencies are a great threat to the financial stability of the country.
The legislation includes banning cryptocurrencies completely. That includes all issuances and operations. Banks would not be allowed to invest in cryptocurrencies anymore and exchanging crypto for traditional currency would be prohibited.
However, there have been two proposals to the legislation. One of the proposals is to require customer identification upon transactions. That would decline anonymity which is one of the major selling points of cryptocurrencies.
The second proposal includes a requirement to have a license. Only with that license, you would be able to do exchanges with foreign cryptocurrencies.
Those people who would obtain the license would have permission to invest not more than 600,000 roubles. There would be punishment for those who do not follow the rules. Instead of being able to invest 600,000, their limit would be decreased to only 60,000 roubles.
Russia is one of the largest centers for mining digital currencies. Cryptocurrencies can be used as investment tools, says the minister. However, they would not be allowed in the forms of payments.
Big risks of cryptocurrencies being used in illegal actions
The head of the central bank’s financial stability department – Elizaveta Danilova said that anyone who goes out of the country would be allowed to own cryptocurrencies. They would be able to use them abroad. Regardless, their holdings are going to be tracked by the regulators.
Danilova says that there could be many problems allowing cryptocurrencies to rule finance. It may cause money laundering and be a chain to many illegal operations.
She also mentioned that it took them a long time to clear the system from other dubious operations. That includes many banks who tried to use cryptocurrencies in the wrong way. Once defeated problem should not be allowed to walk back through the back door, says the governor.
In the report, it is also mentioned that it is of great importance to ban the usage of Russian financial infrastructure to obtain cryptocurrency. Danilova thinks that this would be a good way to make cryptocurrency less popular in Russia.
Russia is a thriving mining industry
As mentioned before, Russia is one of the world’s biggest crypto miners, next to US and Kazakhstan. Good conditions in northern parts of the country allow cryptocurrencies to be mined on cheaper power. Some of the larger services in the industry are BitRiver and BitCluster.
Banks drew attention to people saying that crypto mining is bad for the environment. It consumes around 110 Terawatt Hours of power per year. Therefore, crypto mining is considered to be a heavy greenhouse gas emitter.
Your capital is at risk.
Check live crypto rates here
Start trading today – See our list of exchanges
It’s really a great and useful piece of information. I’m glad that you shared this helpful information with us. Please keep us up to date like this. Thanks for sharing.
hi!,I like your writing so much! share we communicate more about your article on AOL? I require an expert on this area to solve my problem. Maybe that’s you! Looking forward to see you.
Magnificent website. Plenty of helpful information here. I am sending it to a few pals ans also sharing in delicious. And certainly, thank you in your sweat!
You should take part in a contest for one of the best blogs on the web. I’ll advocate this website!
Thanx for the effort, keep up the good work Great work, I am going to start a small Blog Engine course work using your site I hope you enjoy blogging with the popular BlogEngine.net.Thethoughts you express are really awesome. Hope you will right some more posts.
I am happy that I detected this web site, precisely the right information that I was searching for! .
Some really nice stuff on this site, I love it.
Awsome website! I am loving it!! Will be back later to read some more. I am taking your feeds also.
Dead written content material, Really enjoyed reading.
What’s Going down i’m new to this, I stumbled upon this I have found It absolutely helpful and it has helped me out loads. I hope to contribute & assist other users like its aided me. Good job.
Hi there! This is my first visit to your blog! We are a collection of volunteers and starting a new project in a community in the same niche. Your blog provided us beneficial information to work on. You have done a extraordinary job!
I like this web site very much so much great information.
Once I originally commented I clicked the -Notify me when new comments are added- checkbox and now each time a comment is added I get four emails with the same comment. Is there any approach you can take away me from that service? Thanks!
I simply desired to thank you very much all over again. I do not know the things I would have done without those ideas revealed by you concerning such a industry. It was the fearsome problem in my circumstances, nevertheless taking note of a professional style you treated the issue took me to weep with delight. I’m thankful for this guidance and thus hope that you are aware of a great job that you are getting into instructing people today with the aid of your web blog. Probably you’ve never got to know all of us.
Hey There. I found your blog using msn. This is an extremely well written article. I will make sure to bookmark it and come back to read more of your useful information. Thanks for the post. I’ll certainly return.
I am continually browsing online for tips that can benefit me. Thank you!