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Cryptocurrency could soon be banned in Russia under new proposal




Russia is considering becoming the newest country to ban cryptocurrencies due to a number of concerns about their impact.

Russia is considering a total ban on cryptocurrencies due to concerns about the impact on the environment and also about the ability of users to escape financial regulations.

According to a report published by the local central bank on Thursday local time, mining and cryptocurrency trading are against Russia’s green agenda and can be used to launder money or finance terrorism.

The report estimates that the cryptocurrency industry generates $ 7 billion a year in Russia.

The cryptocurrency, according to the bank, has much in common with the pyramid scheme, which also called for crypto-rule violators to face the full penalty of the law.

Although the bank’s proposal to take action against the cryptocurrencies is just that – the proposal – Russia seems to be speeding up parliamentary sessions so that a possible ban can take effect as soon as possible.

The chairman of the lower house of parliament, Vyacheslav Volodin, revealed this week that lawmakers are creating a regulatory framework for cryptocurrencies, which will be ready in time for the spring session of the Russian parliament.

According to the proposal, it would not be possible to create, mine or trade cryptocurrencies on Russian soil – including blocking customers from using cryptocurrency platforms.

Russians with offshore accounts could still trade in cryptocurrencies.

If Russia’s proposal continued, it would be a big blow to the cryptocurrency market around the world.

Russian citizens make up the third largest number of cryptocurrency miners after the United States and Kazakhstan.

Blockchain miners have made the most of Russia’s unique resources to maximize their mining, with people flocking to the north and Siberia to mine blockchain because energy is cheap there.

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

She also cited environmental concerns as she continued to allow the mining and trading of cryptocurrencies in an unregulated environment.

Through its transactions alone, bitcoin produces 36.95 megatons of CO2 per year – similar to the entire carbon footprint of New Zealand.

“The best solution is to introduce a ban on cryptocurrency mining in Russia,” the bank concluded.

Russia has never been a fan of cryptocurrencies, and this is not the first attempt at regulation that has frightened the crypto community.

In 2020, Russia will not allow cryptocurrencies to be used to pay for things in the country.

In December, the government banned investment firms from investing any money in cryptocurring exchanges.

It is not the only country considering tightening regulations and even banning blockchains.

The Australian financial watchdog is calling for more regulation, and the United States Federal Reserve is expecting more restrictions some time this year.

China has gone a step further and completely banned everything related to cryptocurrencies at the end of September last year during a major technological breakthrough.

“Virtual currency-related business activities are illegal financial activities,” the People’s Bank of China said at the time.

The central bank said the perpetrators would be “investigated for criminal liability in accordance with the law.”

It has criminalized all related financial activities involving cryptocurrencies, such as cryptocurrency trading, token sales, transactions involving virtual currency derivatives and “illegal fundraising”.

Egypt, Iraq, Qatar, Oman, Morocco, Algeria, Tunisia and Bangladesh have also banned cryptocurrencies.

In November, Indonesia also banned cryptocurrency for its entire Muslim population because it contained “betting elements.”

It was originally published as Russia’s central bank, which wants to ban cryptocurrencies

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