Russia’s Plan to Ban Crypto Raises Market Concerns

‘Digital financial assets issued in Russian jurisdiction, and digital rubles will be allowed. The need for a ban is due to the fact that today cryptocurrency – is a quasi-currency that replaces the ruble in the country. But only the Russian ruble fulfills the mission of the monetary unit, so this decision has been made

Anatoly Aksakov

The development has generated a heated debate across the nation. Artem Kiryanov, Deputy Chairman of the State Duma Committee on Economic Policy, emphasized the need for efficient regulation. 

Kiryanov added, ‘The regulation of cryptocurrencies should be defined in the digital code, which would spell out the conceptual apparatus and common judicial law enforcement practice.’

The Bitcoin market has had its fair share of ups and downs. Previously, China issued a blanket ban on cryptocurrency and mining activity, causing a market-wide drop. However, during the Chinese prohibition, China accounted for most of the worldwide mining force.

The embargo resulted in a large migration of miners from the country, severely impacting the market.

Will the Bitcoin market implode as a result of Russia’s ban?

However, Russia has a different mining population. As a result, the market impact is likely to be small. However, it is worth noting that the cryptocurrency market has experienced another correction this week, with Bitcoin (BTC) losing 2.6% on the daily charts and 6.2% on the weekly charts.

The correction could be attributed to Russia’s recent move and escalating global concerns.