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Russian Twist on Crypto Position, Again

The Russians once again shocked the world with their stance on crypto. In the last few months, crypto-investors saw that Russian central bankers, politicians, and government officials continued to take their positions on cryptocurrencies; They brought it back again. The bill entered the lower house of the Russian parliament, prohibiting cryptocurrency as a payment method; proposed on June 7 by Anatoliy Aksakov, head of the Financial Markets Committee of the lower house of the Russian parliament. The bill prohibits using digital assets for any financial transaction, Including payment for goods or services.

The cover of the proposed bill stated that the ruble is the official currency of the Russian Federation. This article prohibits the introduction of other monetary units or monetary surrogates into the territory of the Russian Federation. This new proposal came a few days later, which allowed the Central Bank of Russia to allow crypto payments for foreign transactions. Moreover, last month the Russian Minister of Industry and Trade said that the legalization of crypto payments in Russia is not a matter of if but when.

According to the minister, bitcoin and other cryptocurrencies that were acceptable for payments in Russia are only a matter of time; it will happen sooner or later. Returning Russia back and forth to cryptocurrencies is not new. Earlier this year, Russia’s central bank backed a comprehensive ban on cryptocurrencies. It also called on lawmakers to pass legislation that violates cryptocurrency trading, mining, and use in Russia.

Russian Strategy and Crypto

The central bank argued that cryptocurrencies are highly volatile and used to fund illicit transactions worldwide. In response, the Financial Policy Department of the Russian Ministry of Finance stated that cryptocurrency restriction would be a bad choice in the Russian Federation. He said the ban would put the country behind other countries in the global technology sector. Instead, he added, Russia should take steps to regulate them better. Russian President Vladimir Putin then intervened and called on both sides; to resolve their differences and reach an agreement on the issue.

During a video conference with his government ministers, Putin mentioned Russia’s favorable position in cryptocurrency mining. After the intervention of the President of Russia, central bankers, politicians, and the government have repeatedly tried to push the issue back and forth, but to no avail. Consensus has not yet been reached, and the way forward also seems vague.

Binance is in Trouble

This week started severely for Binance, the world’s largest cryptocurrency exchange. The platform is in the throes of bad news. The Securities and Exchange Commission launched an investigation into whether Binance violated the securities rules; When the firm issued its native BNB token five years ago; As part of the initial offering of coins.

The SEC considers ICOs to be the issuance of virtual coins to raise money as securities; obliging their issuers to follow specific rules. Investigators are searching whether the initial offer of the 2017 coins was to sell the securities, which should have been registered with the agency. According to CoinGecko, the BNB Token is the fifth-largest cryptocurrency in the world at market value.

As early as July 2020, the founder of Binance wrote in a blog post that in January 2019, the wording on the sale and the 20% profit association changed. This happened because of the advice of a third-party legal counsel, which indicates the potential for misunderstandings because security is higher in certain regions. It also did not accurately describe the fact that the company did not need to buy back.

However, the most severe criticism of Binance comes from a Reuters investigation published on June 6. This raises doubts about the platform. According to the investigation, Binance processed $2.35 billion in transactions caused by investment fraud, hacking and illegal sale of drugs. Transactions should be completed by 2017-2021 Before Binance takes action to combat money laundering.



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