How to Understand Word of the Russian Crypto Exchange Ban
The idea, according to Reuters who reported on this, seems to be to replace Russian citizens using existing exchanges with them using centralized exchanges. This would likely be a wash, or even a benefit for the average trader, but would certainly make it harder for the less savory traders out there who embrace crypto for its cryptographic and anonymous aspects.
This move was somewhat expected for any country (with many feeling like it is the inevitable direction all countries will go in), but it was more-so especially expected in Russia, as Russia had announced they planned to both embrace and regulate crypto.
In other words, Russia essentially just did what China did back in early September (announced a ban, but not a ban of crypto itself). That means both major countries (major in the world economies, and major in the crypto economy) will almost certainly see drastic changes by the year end. That changes the crypto landscape, but it doesn’t mean crypto won’t have a future.
In fact, one could argue that countries embracing crypto in any form, even to the extent that the state closely watches over or operates exchanges, could do more to help crypto than hurt it (as the market could do with a little stability).
With that said, how the news will affect things is uncertain, and this announcement isn’t binding. The public will instead have to wait for official regulations at the end of October or later. Consider with that that Bitcoin Gold for is slated for Oct. 25th, and we can say for sure, October will be a tense month for crypto.
In the meantime, with all the above in mind, cryptocurrency users should conservatively set stops or wait for clearer times, but they shouldn’t however see this as a time to panic and throw in the towel for good.
BTC is currently at $4.8k as I write this article, and no one should put it past the market to make another bull-run up to $5k while everyone focuses on what the upcoming forks could mean.
NOTE: Russia has also planned to release its own cryptocurrency, the centrally controlled CryptoRuble.
NOTE: For all anyone knows China and Russia could come out in late October (or later) and tell everyone they changed their mind. So, set your stops, and prepare for the worst… but don’t panic. Just be ready for anything. This is not a time to confuse your own excitement with crypto for the sentiments of the world’s different regulatory and crypto players.
- Russian central bank to ban websites offering crypto-currencies
- Bitcoin is tumbling after Chinese regulators say an exchange ban is certain