Russia: Putin bans crypto
Russia: Putin bans crypto
Crypto

Russia: Putin bans crypto

By George Michael Belardinelli - 18 Jul 2022

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Russian President Vladimir Putin signed the bill that had been passed on 8 July that effectively bans crypto in the country. 

Indeed, the previous weekend marked an important milestone for the Kremlin and its economy. 

Vladimir Putin signed what is currently for all intents and purposes the regulation governing the use of crypto and their operation in Russia. 

The bill that was finally approved is actually not the final step and does not ban crypto altogether. Let’s proceed in an orderly fashion. 

The law covers payments and the flow of crypto in return for services or for the purchase of goods of any kind but does not prohibit their purchase for investment. 

“It is forbidden to transfer or accept digital financial assets as consideration for assets sold, works performed, services rendered, as well as in any other way that allows for the payment of goods (works, services) from a digital financial asset, unless otherwise provided for by Federal laws”.

This is what is reported on the website of the Duma, the Russian Parliament. 

In short, a ban with strings attached: shackles loose enough to allow the country to bring in substantial resources despite the fact that both major crypto exchanges, Coinbase and Binance, have stated that they will abide by the provisions of the United States of America and Europe on the ban on Russia’s use of platforms. 

As for this law not being final, it is worth mentioning that discussions between the Russian Central Bank, Ministry of Finance and the President are the basis for a broader framework law that will be the real vademecum for Moscow’s use of digital currencies. 

With sanctions imposed by Atlanticist countries and the European Union, Moscow has often tapped into crypto to clean up its resources and continue to finance itself, and this has been the subject of outrage from the international community, but it has brought to light the true potential of digital currencies. 

Cryptocurrencies are not dependent on a central bank, and Bitcoin, not having a corporation pulling the strings behind it, is the most unrestricted medium of exchange possible that has helped both sides of the conflict in Ukraine. 

Indeed, Ukraine initially financed itself with donations in digital currencies on a massive scale, and Russia for its part exploited these currencies to circumvent international sanctions and continue its dominance.

George Michael Belardinelli

A former corporate manager at Carifac Spa and later at Veneto Banca Scpa, blogger and Rhumière, over the years he has become passionate about philosophy and the opportunities that innovation and the media make available to us, in particular the metaverse and augmented reality

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