The value of Bitcoin plummeted early Thursday, 24 February 2022, as word surfaced of a growing Russian military offensive in Ukraine.
According to market statistics, the price of Bitcoin (BTC) was slightly around $37,000 when press reports and online posts began to circulate, with films portraying missile attacks, notably on Kiev’s main airport. Russian President Vladimir Putin declared a “special military operation” in the nation, provoking outrage from foreign dignitaries, notably, US President Joe Biden. The report broke after a time of heightened concerns between Russia, Ukraine, and NATO allies, particularly the United States.
As per TradingView statistics, the price of Bitcoin (BTC) fell to a local low of $34,322 on Coinbase. However, at the time of writing, Bitcoin (BTC) was priced at $35,465.36 and had dipped by 8.78% in the last 24 hours.
In addition, at the start of trade on Thursday, Asian stock indices were also down, and US market futures pointed to further losses. The price of oil soared as well in response to the Russian strikes.
Following Russia’s invasion, Ukraine’s central bank outlawed the circulation of electronic money and the refilling of electronic wallets. Among these, the bank instructed that e-money providers be suspended, that e-wallets be replenished with e-money, and that e-money be distributed to e-money financial institutions.
In this case, e-money most probably represents fiat currency maintained in digital data, like the one stored in a PayPal account or a digital bank through a cash app. It’s questionable if this applies to cryptocurrency or other digital money. The central bank was given approval to issue a digital currency last year (CBDC).
Crypto trading confined only to licensed platforms and certified wallets in Russia
As a result of the ongoing war, the Ministry of Finance is considering a restricted legislative framework rather than a ban.
According to the Ministry of Finance’s suggested bill on supervising cryptocurrencies, Russian people will be confined to performing digital currency operations through licensed operators, thereby making peer-to-peer trading illegal. Only cryptocurrency wallets that have been verified will be accepted.
Operators of digital currencies that facilitate transactions, like established industries, must submit yearly financial reports and meet other requirements.
Furthermore, convicted felons are not permitted to lead digital currency companies. This includes those accused of terrorism financing and radicalism, charges that have been leveled against Russian political opponents in recent years.
However, miners will be required to declare their earnings to the IRS. Only Russian data centers that are owned by Russian firms can provide services for miners. Big miners must sign up for a committed list of miners. Small “home” miners are exempt from this requirement unless their electricity use exceeds a particular level not mentioned in the bill.