Russia recognizes that it is impossible to ban Bitcoin

Russian Finance Minister Anton Siluanov has finally commented on the potential regulation of cryptocurrency markets, and his comments seem bullish for the industry.

It is impossible to ban cryptocurrencies

Commenting on the recent discussion between the Ministry of Finance and the Russian Central Bank, which wants to ban cryptocurrencies, Siluanov said a cryptocurrency ban is similar to an internet ban, which is impossible.

He noted that the risks highlighted by the Russian central bank are real, but regulation is the preferred option over a blanket ban.

He also added that Russia needs to create a legal framework for crypto mining in order to tax this business. At this point, it appears that Russia may be ready to attract some miners from Kazakhstan, which is ready to increase the tax on crypto mining tenfold.

Russia is not ready to follow China's path

China is the only big country it is managed to ban cryptocurrencies, and the crypto market has successfully survived this ban. Russia is not ready to follow in China's footsteps, which is bullish for Bitcoin, Ethereum and other cryptocurrencies, as the country's citizens contribute materially to the crypto community as both buyers and developers.

The recent discussion between the Russian Central Bank and other officials also shows that the cryptocurrency market has become too big to ignore, and even countries that prefer to have a tight grip on their financial system need to recognize the fact that cryptocurrencies are here for. to remain.

In the short term, news from Russia is not expected to have much of an impact on the cryptocurrency market which is currently focused on overall risk sentiment. Total cryptocurrency market capital has faced resistance near the $ 2 trillion level, and will need to settle above this level to gain further upward momentum. In the long run, recent developments in Russia are certainly bullish for cryptocurrencies.

What does this mean for the cryptocurrency markets?

According to the Bank of Russia, the country accounted for 11,2% of the global hashrate in August 2021. Its share in the global hashrate was increasing rapidly, as it was only 6,9% in early 2021. In August 2021, Russia was behind the United States (35,4%) and Kazakhstan (18,1%).

It should be noted that the cryptocurrency markets have been able to deal with the ban on cryptocurrency mining in China. However, crypto miners may soon find themselves in a 'nowhere to run' situation as the number of countries with cheap electricity and sufficient technical development is limited. If Russia bans crypto mining and something happens in Kazakhstan, which recently suffered from unrest, miners could find themselves stranded in the United States.

It is unclear whether the news will have an immediate impact on Bitcoin and other leading cryptocurrencies such as Ethereum, Cardano or Solana. The good news is that the Bank of Russia has not proposed banning cryptocurrencies for Russian citizens, so there is no risk of forced sales, which could have put pressure on some coins.