Russian President Vladimir Putin in a meeting in Moscow with Governor Andrei Vorobyov. AP photo
Vladimir Putin, president of Russiapromulgated this Saturday a reads that prohibits the use of cryptocurrencies for paymentsafter the Russian government and the Central Bank discussed what action to take with digital assets.
In January, the Bank of Russia proposed a total ban on cryptocurrencies for payments or investments. However, the current law he doesn’t go into measurements so much. In February, the Russian Ministry of Finance presented the government with a draft regulation on cryptocurrencies which, like the law enacted this weekend, allows you to invest in digital assets like Bitcoin or Ethereum, but not use them to buy things.
The law, published on the website of the Russian parliament and translated by Google Translate, reads: “It is forbidden to transfer or accept digital financial assets as consideration for transferred assets, works performed, services rendered, as well as in any other way that allows you to assume the payment of goods (works, services) for a digital financial asset, unless otherwise provided by federal law “.
Russia has been in the cryptocurrency spotlight ever since the country invaded Ukraine. Consequentially, large cryptocurrency companies, like Binance and Coinbase, they have said they will comply with US or EU laws on restricting the use of exchanges by Russians.
How is the cryptocurrency law
Cryptocurrency legislation in Russia isn’t straightforward – the country’s central bank previously called for a ban on Bitcoin mining and cryptocurrency transactions, but earlier this year the country’s Finance Ministry said it would be “necessary to allow” development of cryptocurrency technology.
President Putin expressed his enthusiasm for Bitcoin mining in January when he said that Russia has “certain competitive advantages”, including a “excess electricity and well-trained staff available in the country “to mine the currency.
Bitcoin closes the week at around 5%. $ 20,790.64, Ethereum is holding at $ 1,231.54, down less than 1% in 7 days, according to data from CoinMarketCap.
Black week for a broker: Celsius
“Bear market” in the winter of cryptocurrencies. photo by Reuters
Meanwhile, the cryptocurrency ecosystem is experiencing turmoil. The Celsius Network platform, which went bankrupt on Wednesday, has a deficit of $ 1,190 million in its income statementthey showed court documents filed Thursday in a New York courthouse.
The documentation also indicates that the New Jersey (USA) -based company has pending raising of $ 40 million from Three Arrows Capital, a cryptocurrency investment based in Singapore and which has also filed for bankruptcy.
The company has only $ 167 million in cash to cover the costs of the restructuring with which it seeks to stabilize its business and be able to exit failure.
On June 13, the most popular cryptocurrency, bitcoin, plunged 15% after learning that Celsius Network suspended all transactions between customers and vetoed the withdrawal of capital due to the “extreme conditions” of the market.
The cryptocurrency market, which had hit historic records during the pandemic, has been collapsing for months, with the value of these digital currencies plummeting.
Bitcoin closed the first half with losses of almost 60% of its value, and the drop accumulated from the highs reached last November, when bitcoin hit the $ 69,000, reached 72%.
Analysts explain that the collapse recorded by cryptocurrencies is due to the tightening of monetary policies by central banks, with the consequent fear of a market recession.
It also responds to the measures taken by various companies in the sector in the face of fears of a “crypto winter” (a prolonged period of falling prices), which have generated distrust among users.
Source: Clarin
