Putin Signs Ban on Crypto Payments in Russia

[RealDude]

The action comes after the Russian government and central bank have long debated what to do about cryptocurrency.

https://decrypt.co/105240/russian-crypto-ban-signed-by-putin

 

[Vor]

the real question will be what is their actual enforcement gonna look like. The reality with all things is the law means nothing unless it's actually gonna be enforced. I'd imagine this is them trying to stop all capital flight from Russia.

 

[RealDude]

I'd imagine this is them trying to stop all capital flight from Russia.

Yep. Even gold from Russia will soon be banned. Have the West and the East colluded?

 

[menzu]

Bitcoin has been the primary traded assets wherever it’s banned, free market and underground markets sprout like mushrooms whenever financial restrictions are imposed.

There will be premium on the price of BTC to quantify the risk of offering bitcoin trading, but you can’t stop it.

 

[Ridden3328]

the real question will be what is their actual enforcement gonna look like. The reality with all things is the law means nothing unless it's actually gonna be enforced. I'd imagine this is them trying to stop all capital flight from Russia.

Same in Turkey but the law is not enforced.

 

[menzu]

Same in all emerging markets — they can’t regulate, ban, monitor or tam a free market, it’s not new to Bitcoin, it was like that for USD since years.

 

[Vor]

Same in all emerging markets — they can’t regulate, ban, monitor or tam a free market, it’s not new to Bitcoin, it was like that for USD since years.

This is the beauty to me of emerging market countries is that they are la la land when it comes to actually enforcing regulations and taxes... compared to say the EU where their is rules for everything and fairly serious tax enforcement. To me the best way to be is a business that sells to the first world developed markets where you can make serious money but live in the developing world where you have much less paperwork and bs.

 

[Forester]

Bitcoin has been the primary traded assets wherever it’s banned, free market and underground markets sprout like mushrooms whenever financial restrictions are imposed.

There will be premium on the price of BTC to quantify the risk of offering bitcoin trading, but you can’t stop it.

I am afraid that you are remarkably underestimating the Russian government oppressive power (or you are lacking the information about).
To avoid misunderstanding: I cannot judge whether the ban will be really enforced. I only want to say – if the Russian government (i.e. Putin and his fellows) decides to enforce it, it will be enforced effectively (and brutally).

 

[menzu]

I am afraid that you are remarkably underestimating the Russian government oppressive power (or you are lacking the information about).
To avoid misunderstanding: I cannot judge whether the ban will be really enforced. I only want to say – if the Russian government (i.e. Putin and his fellows) decides to enforce it, it will be enforced effectively (and brutally).

I will quote myself : "There will be premium on the price of BTC to quantify the risk of offering bitcoin trading".

I didn't say everyone will easily buy Bitcoin, I didn't say everyone will be selling crypto, but russians who live abroad and have access to bitcoin markets and need Rub for business deals in Russia will leverage bitcoin, sell it at premium.

Actually, if you have your parents in Russia and want to send them money, your only option is probably bitcoin, you will go through a P2P trader will a good reputation and he will fund their local bank account.

 

[Forester]

Actually, if you have your parents in Russia and want to send them money, your only option is probably bitcoin,

This is not correct. It heavily depends on where you live. Do not forget that only ~40 (IIRC) countries introduced some sanctions against Russia. In the rest of the world, business with Russia is running. The disconnection of majority of Russian banks from SWIFT is a problem; but solvable. (Do not forget that an international trade is much, much older than SWIFT.)

you will go through a P2P trader will a good reputation and he will fund their local bank account.

What P2P trader? Russian? Yes, now it is probably possible. And probably even after the abovementioned ban, as the ban targets only using crypto for payments, investing in crypto is still allowed – if I read correctly.
But I really do not think the idea that a free market and underground markets can sprout like mushrooms is now generally valid for Russia.

Bottom line: May I ask you one short question? Do you have a personal experience, direct or indirect (i.e. from your close friend or business partner) with living and/or running business in Russia for a sufficiently long time? (And take into account that Russia is not only Moscow and St.Petersburg, the majority of Russian population lives at province.)
If yes, then – we simply have different opinions. It can happen.
If no – sorry, but in such a case you do not know what you are talking about. Russia is not the US, not Europe, not Japan, not Africa. It is a different environment. I do not want to say that it is horrible or excellent; just different.

 

[Frederic9020]

This is not correct. It heavily depends on where you live. Do not forget that only ~40 (IIRC) countries introduced some sanctions against Russia. In the rest of the world, business with Russia is running. The disconnection of majority of Russian banks from SWIFT is a problem; but solvable. (Do not forget that an international trade is much, much older than SWIFT.)

What P2P trader? Russian? Yes, now it is probably possible. And probably even after the abovementioned ban, as the ban targets only using crypto for payments, investing in crypto is still allowed – if I read correctly.
But I really do not think the idea that a free market and underground markets can sprout like mushrooms is now generally valid for Russia.

Bottom line: May I ask you one short question? Do you have a personal experience, direct or indirect (i.e. from your close friend or business partner) with living and/or running business in Russia for a sufficiently long time? (And take into account that Russia is not only Moscow and St.Petersburg, the majority of Russian population lives at province.)
If yes, then – we simply have different opinions. It can happen.
If no – sorry, but in such a case you do not know what you are talking about. Russia is not the US, not Europe, not Japan, not Africa. It is a different environment. I do not want to say that it is horrible or excellent; just different.

It's funny to read people's thoughts about Russia. It's simpler than you think. In Russia, it only takes an hour to exchange btc for cash. We have a lot of people doing the exchanging.
Putin has banned buying and selling. In Russia you can't buy anything in a shop with cryptocurrency. But everyone knows how and where to buy it. So many companies have switched to cryptocurrency after the shutdown of swift

 

[Forester]

It's funny to read people's thoughts about Russia.

Well, my thoughts are based on some experience

It's simpler than you think. In Russia, it only takes an hour to exchange btc for cash. We have a lot of people doing the exchanging.
Putin has banned buying and selling. In Russia you can't buy anything in a shop with cryptocurrency.

We are not in contradiction. Investing to crypto and converting it to fiat is not banned even now – and it goes well.

But everyone knows how and where to buy it.

Well, I do not think that any inhabitant of a Russian village knows it; but I (hopefully) understand what you mean

So many companies have switched to cryptocurrency after the shutdown of swift

Probably yes – but I do not believe that they will use crypto for the regular payments processing, if the ban is enforced.

 

[JackAlabama]

This is the beauty to me of emerging market countries is that they are la la land when it comes to actually enforcing regulations and taxes... compared to say the EU where their is rules for everything and fairly serious tax enforcement. To me the best way to be is a business that sells to the first world developed markets where you can make serious money but live in the developing world where you have much less paperwork and bs.

True. the developing world offers a very broad choice of taste from Asian, Latin and African and even Eastern European flavors.

 

[Frederic9020]

Well, my thoughts are based on some experience

We are not in contradiction. Investing to crypto and converting it to fiat is not banned even now – and it goes well.

Well, I do not think that any inhabitant of a Russian village knows it; but I (hopefully) understand what you mean

Probably yes – but I do not believe that they will use crypto for the regular payments processing, if the ban is enforced.

from where do you know everything? have you lived in Russia? judging by the ip, you're in Asia

 

[Forester]

from where do you know everything?

I definitely do not know everything. Just the opposite. The more I learn, the more I found being lacking

have you lived in Russia?

Honestly, not for a sufficiently long time, I think. But people close to me lived there for years.

judging by the ip, you're in Asia

False judgement. Not at all...

 

[RealDude]

Russia outlines its position on crypto​

The use of digital currencies as a means of settlement will remain prohibited, says the central bank.

https://www.rt.com/business/562238-russia-outlines-crypto-position/

 

[Cocopops]

This is the beauty to me of emerging market countries is that they are la la land when it comes to actually enforcing regulations and taxes... compared to say the EU where their is rules for everything and fairly serious tax enforcement. To me the best way to be is a business that sells to the first world developed markets where you can make serious money but live in the developing world where you have much less paperwork and bs.

The problem you have when you sell to the first developed country is that their currencies are very weak, so you really have to sell a lot to make good money. I prefer to sell on the dollarized market. If you have some advices on how to fight the problem that I said I am curious about it?

 

[backpacker]

https://www.rt.com/russia/563261-every-little-btc-helps/

 

[JohnnyDoe]

https://www.rt.com/russia/563261-every-little-btc-helps/

Corruption in Ukraine? Is this what you are insinuating?

 

[avalanche]

The action comes after the Russian government and central bank have long debated what to do about cryptocurrency.

https://decrypt.co/105240/russian-crypto-ban-signed-by-putin

One little detail it seems to be missing. Is that this ban is imposed only on transactions within a country. Their gov wanted to permit cross border settlements in crypto. Seems to be one sided article