- Trade Bitcoin has become a popular phrase across the world as digital currencies continue to face regulations in different parts of the world
- Kungur City Court orders ban on website explaining how to cash out from Bitcoin to fiat currency
- Five requests have been placed since the beginning of the year as prosecutors believe cryptocurrencies are against Russian laws
Cryptocurrencies have taken the financial world by storm especially over the last year as Bitcoin reached its highest peak of $62k and plummeted to its February lows of $30k within two months. Digital currencies have taken the form of securities in some places while property in the USA and recently a legal tender in El Salvador.
Russian authorities, too, have placed several restrictions on cryptocurrencies over the past couple of years. It had taken down websites that promote trading in cryptocurrencies as they felt the speculative nature could harm investors on a huge scale.
Kungur City Court in the Perm Krai region of Russia upheld Beryozovsky District Prosecutor’s request to ban websites that teach how to trade in Bitcoin as well as cash out from it.
Crackdown not effective for enthusiastic investors
The dubious nature of cryptocurrency transactions has led to stricter norms in Russia. The restrictions will have little or no effect on investors as crypto enthusiasts continue to rule the market with effervescence.
The fact that the founder of the world’s second most famous cryptocurrency, Ethereum, is from Russia has a lot to do with the recent crypto boom in the country. Vitalik Buterin’s efforts to decriminalise digital currencies are finally taking shape as investors are in search of superior returns.
The unshackled financial regulators also continue to wage war against digital currencies as they plan to come up with a central digital currency that the government will be able to regulate. The president of Russia has also flipped-flopped from announcing his love for cryptocurrencies and hating them the very next moment.
Regulations needed for safe investment environment
In 2018, St Petersburg City Court had overturned a ban on cryptocurrency media outlet Bitcoininfo.ru. The quashing of the district court’s order did leave an impact among Russians combined with the rage of cryptocurrencies during the pandemic.
However the government has placed severa regulations to prevent illicit activities and money laundering on behalf of scamsters. In September last year two Russians were charged with stealing virtual currencies worth $17 million.
Criminal charges and financial sanctions were placed for carrying out phishing attacks over two years via spoofed websites. Regulations from the court and the government will prevent such attacks in the future and fasten the acceptance of the CBDC program rollout.