Putin Bans Crypto Payments in Russia, Amid Claims They're Behind Huge Surge in Pyramid Schemes
Crypto News

Putin Bans Crypto Payments in Russia, Amid Claims They're Behind Huge Surge in Pyramid Schemes

1m
Created 4mo ago, last updated 4mo ago

The president's move means digital assets cannot be used to acquire goods, services and products across the country.

Putin Bans Crypto Payments in Russia, Amid Claims They're Behind Huge Surge in Pyramid Schemes

Table of Contents

Listen to the CoinMarketRecap podcast on Apple Podcasts, Spotify and Google Podcasts

Vladimir Putin has signed a law that bans crypto payments in Russia — amid claims they're behind a dramatic surge in pyramid schemes.

The president's move means digital assets cannot be used to acquire goods, services and products across the country.

It all comes after a tug of war between governmental bodies on the best way to handle the rise of cryptocurrencies.

While the Bank of Russia wanted all crypto-related activity to be banned outright, the country's Ministry of Finance was advocating for regulation.

Some politicians there have drawn parallels between "cryptomania" and gambling addiction, with the latter already subject to harsh rules nationwide.

Anatoly Aksakov, who heads up the financial committee in Russia's lower house of parliament, was quoted by Reuters as saying:

"The phenomenon exists and it cannot be ignored."

'Pyramid Schemes' Surge in Russia

Meanwhile, figures from the Bank of Russia suggest 954 pyramid schemes were identified in the first half of 2022 — 6.5 times higher than the same period a year earlier.

Of those, 56% were said to have "raised funds in various cryptocurrencies" — or advertised investments in digital assets.

The central bank says that many of these schemes operate on the Telegram messaging app, and don't have a website of their own.

7 people liked this article