Russian regulators slammed Bitcoin holders by making the use of the cryptocurrency impossible for its citizens during the crash of the Russian ruble as we are reading more in the bitcoin news today.
The Russian regulators slammed bitcoin as they are trying to impose harsh regulatory restrictions on cryptocurrencies starting from 2021 while the country is gearing up for the launch of the digital ruble and issued and controlled by the central bank. The measures could be aimed towards supporting the national currency which suffers from the geopolitical uncertainty and the sanctions imposed by the United States.
Weekly LocalBitcoins volume (Russian Ruble). Source CoinDance
Russia approaches a critical milestone in the regulation of crypto-assets and digital assets. some of the essential documents were accepted and the new rules will start taking place from 2021 but this means there will be a bleak future for the crypto community in the country. According to the latest updates from the central bank, crypto investors will face severe restrictions on the amount of crypto they can buy and how they will eventually use it. Government officials don’t want their citizens to be involved in crypto saying that it is mostly used for illicit activities.
In the meantime, Russia is considering launching the digital ruble to enter the currency race to the country’s current landscape is expected to favor the national digital currency rather than crypto. The Russian government spent more than 2 years figuring out how it will treat cryptocurrencies before Putin finally signed the bill on Digital financial assets back in July 2020. Despite spending a lot of time on the development of the bill it turned out to be half-prepared. There’s almost no clarity in regards to what should be seen as a digital assets as some definitions fall outside of the conventions and some statements contradict other regulatory acts. The lawyers that analyzed the bill say that the government remains undecided on the policy towards crypto and digital assets.
RUB/USD trading pair. Source TradingView
Still, the government doesn’t see crypto as an alternative to state money so now Russians will not be allowed to spend crypto on goods and services which limit the use cases and hurt the miners. The latest amendments to the bill were published a while ago and the most important takeaway is that unqualified Russian investors will have limits on the crypto purchases.
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