Cryptocurrency Sites Now Getting Blocked in Russian Federation

Putin talks risks of using cryptocurrency

Putin talks risks of using cryptocurrency

It kicked off with a unusual flash crash registered by the CoinDesk tracker that momentarily caused the cryptocurrency to appear to plunge by 12 percent.

Russian Central Bank First Deputy Governor Sergei Shvetsov said today that the country would block access to websites offering "dubious" crypto-coinage, Reuters reports.

"The use of cryptocurrencies bears serious risks", which include money laundering, tax evasion and terrorism funding, Putin said at a conference in Sochi, Russia, according to Bloomberg News. "It's also important not to put up too many barriers". The central bank has expressed concerns about potential risks from the anonymous and uncontrolled instruments. Sberbank PJSC, Russia's largest bank, is studying the possibility of opening cryptocurrency accounts at its Swiss unit, Tass reported last month, citing the head of Sberbank CIB Igor Bulantsev.

Russia's lower house has been discussing a bill to regulate the cryptocurrency trade, while the Chairman of the State Duma Committee on Financial Markets Anatoly Aksakov suggested a pilot program of bitcoin trading on Russian markets. What makes the most sense in Russia's oligarchal system is for the government and a select group of lucky private interests to own the cryptomarket that they eventually approve.

According to CoinDesk's popular price index, which aggregates prices from four exchanges, the digital currency fell more than $600 in just a few minutes. None of the exchanges showed the dramatic dip that CoinDesk displayed earlier today. He warned, however, that instruments like bitcoin are changing from being a method of making payments to a high-yielding asset.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.