Good News From Binance CEO!
CZ, the CEO of the world’s largest crypto exchange Binance, gave the great news to the crypto community minutes ago. So what development did CZ markets share that it thinks influencer? As you know, the tension in Ukraine continues at full speed and Russia is subjected to intense pressure by the western alliance.
Good News From Binance CEO!
According to CZ, CEO of Binance exchange, Russia will legitimize cryptocurrencies for payments.
For now, we clearly see that the price does not believe in such a development. Although it has been about half an hour since CZ made the announcement, Bitcoin continues to find buyers at $ 40,300. The largest cryptocurrency made a sudden move up to $ 40,800 today, and then retreated. The gospel given by CZ is thought to contain inside information, if official Russian sources confirm the news, we will have good news and bad news.
First of all, Russia’s opening of such an area of freedom for cryptocurrencies as a state will bring the use of cryptocurrencies in cross-border payments. Russia, which is currently excluded from international payment systems, has serious problems in this regard. The legitimization of cryptocurrencies will be supportive for Russian companies struggling with similar problems in terms of access to foreign exchange.
The worst part is that the weaponization of cryptocurrencies in this way may widen the front against it. Centralized exchanges may face more severe pressure from regulators, and Russia-linked cryptocurrency addresses may be required to be blocked entirely from centralized exchanges. In this scenario, we see that the Russian crypto community with serious investments is isolated. In this way, more balance than the hot money that will enter the market can be withdrawn from the exchanges, the volumes will loosen and the price will be adversely affected.
Russia and Cryptocurrencies
But will Russia really use cryptocurrencies like Iran as a strategic weapon in its economy? Russia’s central bank called for a crypto mining ban earlier this year. The agency announced on Friday that the Russian Ministry of Finance has changed its digital currency regulation to include provisions for cryptocurrency mining.
The ministry submitted the original draft cryptocurrency law to the Russian Parliament in February, focusing on digital assets as investment vehicles. The ministry said the updated version of the bill details the rules regarding investing and mining cryptocurrencies.
The pending law, dubbed “ Digital Currency, ” comes as the Russian government continues to see growing interest in the use of cryptocurrencies amid the ongoing war in Ukraine that began on February 24, when Russia invaded the country. In January, Russia’s central bank called for a ban on cryptocurrency mining, citing concerns that digital assets could undermine financial stability. News that Russia was considering a state-backed digital ruble, its own central bank digital currency, stirred the news in early February.
In March, Russia’s largest lender, Sberbank, was granted a license by the country’s central bank to begin issuing digital assets in response to US economic sanctions. Sberbank said that assets issued on the bank’s digital platform will be recorded and circulated through a distributed ledger technology system, ensuring “data security” and data immutability. The license will allow companies in Russia to issue their own digital assets, provided they can prove they have cash requirements and use the digital assets issued through the bank’s information system. The news came as concern over how Russian entities could use cryptocurrencies to evade escalating sanctions.
According to a report by Russian news outlet Kommersant, the updated version of “ On Digital Currency ” introduces the concepts of professional and non-professional digital asset purchasing. The report also addressed the need to evaluate cryptocurrency products, investment and mining rules. In other words, there is no clear statement made by Russia yet.