Russian Central Bank Governor Calls for Complete Crypto Prohibition – Moscow’s Possible Digital Trade Shutdown?

Key Points

• Bitcoin surpasses $87k mark amid global regulatory uncertainty and skepticism from central banks.
• Russia and China’s crypto actions are causing speculation about market impact and future regulations.

The crypto market has seen a resurgence in bullish momentum, with Bitcoin (BTC) at the forefront. The worldwide crypto market cap has risen to $2.86 trillion, indicating a 2.86% increase in the last 24 hours.

Bitcoin, which had been having difficulty surpassing the $85,000-resistance level, has now soared to $87,234.34, showing gains of more than 3%.

Regulatory Scrutiny and Crypto

Regulatory scrutiny continues to be a significant influence in the crypto industry. The Bank of Russia, for example, has suggested prohibiting cryptocurrency transactions between residents outside of the experimental legal regime (ELR).

The central bank is also advocating for penalties for those who violate these restrictions, indicating a stricter stance on digital assets in the region.

Elvira Nabiullina, the head of regulators, stated, “We remain with the old position that cryptocurrencies should not be allowed as a means of payment, so we propose to introduce a ban on settlements in cryptocurrencies between residents outside the EPR.”

Global Crypto Position

While Russia’s Central Bank previously recognized the necessity for a regulatory framework to allow “qualified” investors to access cryptocurrencies, it has now proposed stricter controls on crypto settlements.

Furthermore, Japan’s Prime Minister Shigeru Ishiba has expressed concerns about the lack of transparency in Bitcoin reserve strategies in the U.S and other major economies. This skepticism is shared by Switzerland and the European Central Bank, both of which remain wary of widespread crypto adoption.

The Bank of Korea (BOK) recently rejected rumors about including Bitcoin in its foreign exchange reserves, citing extreme volatility as a major risk.

Finally, China’s reported liquidation of nearly $20 billion worth of Bitcoin—originating from the 2019 PlusToken Ponzi scheme—has sparked new speculation about the government’s crypto strategy.

Despite the cautious stance of Russia and the struggle of other nations to trust Bitcoin, the leading cryptocurrency remains strong and continues to assert its dominance in the evolving financial landscape.