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Russian State Duma Mulls Crypto Exchange Ban as Beribit Customers Get Chocolate Instead

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Russia’s Regulatory Stance on Cryptocurrency

The Russian State Duma, the lower house of parliament, is considering a bill that would ban cryptocurrency exchanges and other related businesses in the country. The bill, which was introduced in March 2022, would impose a fine of up to 5 million rubles (US$80,000) on individuals who violate the ban and up to 10 million rubles (US$160,000) on legal entities. The bill is currently under review by the State Duma’s financial markets committee.

The Russian government has taken a cautious approach to cryptocurrency regulation in the past. In 2020, the government passed a law that legalized cryptocurrency ownership but banned its use as a means of payment. The new bill would go further by banning cryptocurrency exchanges and other related businesses, effectively making it impossible for Russians to trade cryptocurrency.

Beribit Customers Receive Chocolate Instead of Withdrawn Funds

In a separate development, customers of the Russian cryptocurrency exchange Beribit have reported receiving chocolate bars instead of the funds they had withdrawn from the exchange. Beribit has not yet commented on the incident, but it is believed that the exchange is experiencing financial difficulties. The incident has raised concerns about the safety of cryptocurrency exchanges in Russia, and it is likely to further damage the reputation of the cryptocurrency industry in the country.

The Interplay Between Crypto and Traditional Stock Markets

The cryptocurrency market has been closely tied to the traditional stock market in recent months, with both markets experiencing significant volatility. The correlation between the two markets has been driven by a number of factors, including the increasing institutional adoption of cryptocurrency and the growing use of cryptocurrency as a hedge against inflation. However, the recent sell-off in the cryptocurrency market has been more pronounced than the sell-off in the stock market, suggesting that cryptocurrency is still a more volatile asset class.

The increasing correlation between the cryptocurrency market and the traditional stock market is a sign of the growing maturity of the cryptocurrency industry. However, it is important to remember that cryptocurrency is still a new and volatile asset class, and it is important to invest accordingly.

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