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Russian Regulators Come to a Common Ground: Bitcoin Can’t be Used for Payments

Russian Regulators Find Common Ground – Bitcoin Can’t Be Used for Payments

Russian authorities are yet to reach full consensus on the future of cryptocurrencies but government institutions are on the same side of the fence in their intention to ban bitcoin payments. Representatives of Russian business said that other operations involving digital assets will be legalized and regulated.

Russian Central Bank and Finance Ministry agree to prohibit crypto payments

The Central Bank of Russia and the Ministry of Finance have come to an agreement on how to regulate Russia’s crypto space. Decentralized digital currencies will not be accepted as a means of payment, the head of the Russian Union of Industrialists and Entrepreneurs (RSPP) Alexander Shokhin told reporters following a meeting devoted to digitalization.

Last month, Bank of Russia urged for a wide-ranging ban of crypto-related activities, including their use in payments, exchange and mining. The hardline policy proposal was met with opposition from other institutions, including the finance ministry which came up with its own vision of how cryptocurrencies should be treated. Siding with the treasury’s stance, the federal government adopted a plan which favors regulation over prohibition.

” It is clear that both sides have come closer to this point. According to the daily Izvestia, Shokhin stated that if we talk about prohibitions, it is more about a ban against the use of cryptocurrency for payment. Other aspects, however, are subject to regulation. The report states that coins can be purchased, traded, and sold according to the government-approved regulatory framework.

Vladimir Potanin (co-chairman of RSPP’s Coordinating Council) noted that regulatory bodies are still trying to agree on details of Russia’s crypto framework, but he stressed that they all support a ban against cryptocurrency being used as a legal tender.

” The business community has come to an agreement with the government, central bank, and lawmakers that cryptocurrency regulations are more complex and difficult than those for digital assets,” the billionaire explained, as quoted by Forklog.

While the regulation of certain aspects of crypto economies, such as token issuance, is important, the Russian law “On Digital Financial Assets” (which was enacted in January last year) left many questions unanswered. A working group at the State Duma, the lower house of parliament, is now preparing legislation to fill the gaps.

A new law introducing comprehensive rules for the circulation of cryptocurrencies in Russia, based on the finance ministry’s proposals, is expected by Feb. 18. An earlier announcement by Anatoly Aksakov, chairman of the Financial Market Committee, was that a draft has been submitted to him. It is expected that the draft will be adopted by the Duma’s spring session.

Do you expect Russia to regulate cryptocurrencies by the parliament’s summer recess? Let us know in the comments below.

Lubomir Tassev

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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BTC slips amid poor debut for Hong Kong spot ETFs

Bitcoin fell to under $62,000 after spiking past $64,700 earlier as Hong Kong spot Bitcoin and Ethereum ETFs began trading. Data showed trading volumes hit just over $11 million, against expectations of over $3oo million. Bitcoin price fell below $62,000 again amid market reaction to less than encouraging numbers from the first day of trading…

  • Bitcoin fell to under $62,000 after spiking past $64,700 earlier as Hong Kong spot Bitcoin and Ethereum ETFs began trading.
  • Data showed trading volumes hit just over $11 million, against expectations of over $3oo million.

Bitcoin price fell below $62,000 again amid market reaction to less than encouraging numbers from the first day of trading for much hyped spot Bitcoin and Ethereum ETFs in Hong Kong.

BTC was down about 1.4% at the time of writing, having touched lows of $61,587 across major crypto exchanges.

The benchmark cryptocurrency, which has struggled to reclaim key levels since its recent halving event, was seeing a 24-hour trading volume of $28.4 billion.

Bitcoin price and Hong Kong spot ETFs debut

Earlier, Bitcoin price surged to above $64,000 as the six spot Bitcoin and spot Ethereum ETFs went live in Hong Kong.

The flagship cryptocurrency rose to over $64,727 on US-based crypto exchange Coinbase. BTC also soared after reports Hong Kong approved the listing of the ETFs.

NEW: 🇭🇰 Opening ceremony of Hong Kong spot #Bitcoin ETFs 👏

— Bitcoin Magazine (@BitcoinMagazine) April 30, 2024

However, as data streamed in showing disappointing trading volumes and inflows, Bitcoin price took a hit. According to details of the six ETFs’s debut day, total trading volume reached just $11 million, not impressive given projections were much higher at over $300 million.

Bitcoin ETFs saw about $8.5 million while Ethereum ETFs recorded just $2.5 million on the first day. Ethereum price fell to $3,040.

Notably, the figures from Hong Kong are way lower compared to those recorded amid the enthusiasm that greeted the launch of spot Bitcoin ETFs in the US in January. On their debut, the US spot BTC ETFs raked in over $4.6 billion in trading volume.

The start to trading for the ETFs has not helped BTC price and BTC could face a slide under the $60k level if sentiment flips negative. On the upside, resistance at $65k remains critical and a breakout could see the bellwether digital asset soar towards its recent peak.

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