DUMA plans to ban crypto exchanges in Russia

Russia has been on a difficult path due to its authoritarian regime. As the world is adopting crypto and decentralized tech, Russian DUMA is planning to ban crypto exchanges. Though crypto is already in trouble in Russia, a ban would completely isolate Russia in the mentioned domain. 

Troubles increase for Beribit

Beribit, one of the largest licensed crypto exchanges has faced troubles recently. As per media reports, Russian authorities have clamped down on the offices of Beribit at the end of March. The raids took place in connection with terrorist attacks that took place on Crocus City Hall. 

The mentioned exchange is officially licensed in Russia and has investments from customers in millions of dollars. It announced in a Telegram post that a change in leadership of the company has taken place. The change in leadership is the result of discrepancies found in the company’s accounts.   

In order to confirm the discrepancies an audit has been undertaken. As the news regarding discrepancies in accounts surfaced, tension in the circles of investors became apparent. As a result of boiling over of these tensions, many customers have occupied Beribit offices. Furthermore, these customers have demanded their funds back. 

According to some estimates, the funds demanded back amount to about $4 million. Some videos have surfaced on social media showing that the customers have been given chocolate instead. Also, they have been told that their funds will be returned in 1-15 days. 

According to a report, the employees of Beribit tried to flee through a backdoor but the customers prevented it from happening. The exchange claims that it is processing the payments while customers refuted it. They said that those customers are receiving payments who have filed police reports.  

Expected ban of crypto exchanges by DUMA

Russian DUMA has brought legislation that would ban cryptocurrency exchanges in the country. DUMA is the lower house of state legislative and plans to do so because of security concerns. The bill has been introduced to the House and will have significant impacts on crypto. 

Though the bill aims to bring a ban on crypto exchanges it will allow crypto transactions and mining firms registered with the government. According to news sources, the bill will also bring a ban on cryptocurrency advertisements. Though Russia has brought drastic changes to the crypto policy, the mentioned bill will have substantial impacts. 

Impacts on Russia if DUMA bans crypto

As Russia has been ostracized in the international financial community due to US sanctions, it is crypto that has helped keep its businesses afloat. Though it plans to bring a ban on crypto exchanges, it will add to its problems. The ban will create problems for common people as well as businesses. 

Some legislators have also raised concerns over the recent bill brought to the DUMA. If the mentioned bill is passed, it will have negative impacts on Russian security interests to which DUMA must pay heed. Crypto has been important to Russian security interests because of its use for the purchase of weapons and other assets. 

Defence equipment and weapons are purchased from non-Western countries through crypto which helps evade sanctions and restrictions put by Western powers. If the mentioned bill is passed in DUMA, it will create considerable problems for the country.

Conclusion

Russian crypto customers have faced problems recently due to the expected ban on crypto exchanges by the lower house of legislation, DUMA. Also, there have been problems faced by the biggest crypto exchange in Russia Beribit which has seen considerable outflows. If the current scenario continues, crypto will see a further decline in Russia.