Here’s why Russia has issued a new “Crypto Payments Ban”
Vladimir Putin, the president of the aggressor state of Russia, has signed a new law that will ban the use of cryptocurrencies and other “digital assets” in the payment area – even though crypto payment is already illegal in the country.
The use of cryptocurrencies as a means of payment was banned in January 2021, when Law 259-FZ (which was adopted by the State Duma in mid-2020) was officially adopted in Russia.
The new law, which comes into force at the end of this month, does little more than strengthen law 259-FZ. However, it contains more details and removes some of the sometimes confusing and vague terminology used in the 2021 law.
Prohibition of crypto payments is the only crypto-related point there Ministry of Finance and Central Bank actually agree. The ministry, which has drafted a bill aimed at regulating crypto, wants to legalize the industry, while the central bank is in favor of a total ban. Legislators will hope that now that the ban on cryptocurrencies has been strengthened, the two parties will hurry up and reach a compromise on cryptocurrency policy.
The new law also mentions specific security tokens and usage symbols, which are explicitly prohibited as a means of payment. It adds that no “goods, works performed or services performed” can be exchanged for cryptocurrencies or other forms of digital payment.
A leading Russian cryptoblog channel called SelfInvestorz noted in a post that “experts agree that the new law will not have a significant impact on the market,” as cryptocurrencies are a very small niche in Russia. Few if any Russian companies have pursued initiatives related to cryptocurrencies.
The blogger added that the law will simply “strengthen the role of the ruble as the only legal tender” in Russia.
And, wrote the same blogger, the development is both “good and bad news” for crypto-fighters.
They added that the good news was that “regulation is always a preacher of stability”, which can lead to “industrial development”.
But the “bad news,” the blogger concluded, was that regulators would inevitably “get to” the sector, and would follow up with “additional restrictions, barriers, bans, fees, commissions and taxes.”
Meanwhile, Russian psychologists are reporting an increase in the number of patients admitted with dependence on crypto and stock trading.
The media Izvestia reported that Dr. Isaeva the rehabilitation center in Moscow stated that it had seen an increase in cases related to cryptocurrencies. The center noted that many of the admissions had previously shown signs of addictive behavior, such as “gambling”.
The clinic reported that the “average age of cryptocurrency addicts” was around 30.
An expert from the clinic was quoted as saying that many drug addicts turned to crypto after they had lost large amounts of money elsewhere and could no longer trade on the stock exchange.
The expert added that drug addicts had a lot in common with both “alcoholics and workaholics.”
Leonardo Guevara, a psychiatrist, narcologist and psychotherapist at Marshak Clincwas cited to explain that stock trading addicts were more likely to turn to psychiatrists for help, while crypto trading addicts are more reluctant to seek help.
Guevara concluded that an “impulsive desire” to perform crypto-related “actions” spurred some trade addicts to chase the “feeling of euphoria and excitement” often associated with buying and selling tokens.
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Learn more:
– Central Bank: No room for stable coins in the Russian economy, only digital rubles will do
– The Russian Ministry of Finance says that there is no room for crypto in the oil trade
– New law will ban crypto payment in Russia (again) as miners struggle to convince the central bank to legalize the industry
– It may be “too early to celebrate” Russia’s new crypto law
– Putin offers to create a new platform for international settlement, reforming rules for foreign exchange
– The Moscow Stock Exchange should launch a crypto-trading platform, says Russian top politician
