After China, Russia To Cripple Bitcoin And Other Cryptocurrency

It was really only a matter of time. First, it was China, which enacted legislation that effectively short-circuited the cryptocurrency market in the country. Now, Russia wants in on the action with plans to cripple the Bitcoin and other digital currencies. Vladimir Putin and other Russian officials basically want to stop cryptocurrency trading within its borders and territories.

This news is just one hit in a mounting number of setbacks that cryptocurrencies like Bitcoin have been experiencing lately. Its value, and those of other coins, is growing at a staggering rate, but with government pressure also rising, it’s not hard to see what cryptocurrency has a bleak future. There’s still no date on when the ban will start, CNBC reports, but Russian officials are working with the nation’s banks to initiate the block.

On Monday, Bitcoin saw a flash crash of its value, which saw a high of $4, 867. The currency has since recovered, but the loss in value has put a lot of investors on edge. As to what Russian officials are saying in justification of this new move against cryptocurrency, Sergei Shvetsov of Russia's central bank notes that the coins apparently pose a huge risk to its citizens.

Among the concerns rattled off by Shvetsov include the possibility of using the coins for money laundering and funding terrorist organizations. Russian President Vladimir Putin subsequently lent his weight to this argument, Bloomberg reports, which effectively sealed Bitcoin’s fate in the country.

However, an anonymous source has revealed to the publication that Russia’s central bank wants to refrain from making hasty decisions. After seeing China’s ruling on the matter of cryptocurrency and the ensuing results, officials want to take some more time to make sure that they are making the right choice.

Enthusiasm for Bitcoin and other digital currencies in Russia has grown considerably, after all. Even the Finance Ministry is pushing to legalize it.