Russia is reportedly preparing for a total and complete crypto ban.
Breaking news! Russia is reportedly preparing for a total and complete crypto ban, focusing on restricting non-Russian crypto operations and reinforcing the dominance of the ruble. However, this move may come as a surprise, as Russia has previously shown interest and acceptance of Bitcoin, even accepting crypto donations for the war against Ukraine. Meanwhile, Australia is taking a different approach by considering approving its first spot Bitcoin and Ethereum ETFs, backed by major ETF issuers. With the pension sector in Australia potentially driving significant demand for these ETFs, the approval could lead to a surge in interest and adoption of cryptocurrencies. Stay tuned to find out more about the true intentions behind Russia’s crypto ban and the potential impact of Australia’s ETFs on the market!
Russia’s Preparation for a Total Crypto Ban
Background of the Crypto Ban
Russia has recently announced its intention to implement a strict ban on the general circulation of crypto assets, including Bitcoin, within its jurisdiction. This ban will only allow digital financial assets issued within Russian jurisdiction, as well as digital rubles. The Chairman of the state Duma committee on the financial markets is leading this initiative, as part of the government’s effort to control the crypto ecosystem. The ban aims to restrict non-Russian crypto operations and reinforce the dominance of the ruble as the official currency.
Aim of the Ban
The ban on crypto assets in Russia is driven by the belief that cryptocurrencies are currently acting as a quasi-currency, replacing the Russian ruble in the country. However, according to Russian officials, only the Russian Ruble fulfills the mission of a monetary unit. Therefore, the government aims to enforce this ban to ensure that only digital financial assets issued within Russia are allowed.
Previous Interest in Bitcoin
It is interesting to note that despite the upcoming ban, Russia has previously shown an interest in and acceptance of Bitcoin. Pro-Russian groups have even raised crypto assets, including substantial amounts of Bitcoin, for the war against Ukraine. This demonstrates that Russia has embraced Bitcoin and utilized it for its intended purpose.
Putin’s Strategy for Strengthening the Ruble
The move to ban crypto assets in Russia may be part of Putin’s overarching strategy to strengthen the ruble, especially as the US dollar weakens. Putin has expressed his views on the US dollar as a tool of foreign policy struggle, considering it a strategic mistake made by US political leadership. By reinforcing the ruble’s dominance and potentially weakening the influence of cryptocurrencies, Putin aims to protect Russia’s financial position and counterbalance the power of the US dollar on the global stage.
Australia’s Plan for BTC & ETH ETFs
Approval of Spot Bitcoin ETFs
Australia is making significant strides in the crypto space, considering the approval of spot Bitcoin ETFs. The country’s largest securities exchange has revealed its strong consideration of approving these ETFs by the end of 2024. This move signifies a major development in the Australian market and represents growing acceptance and adoption of cryptocurrencies.
Pension Sector’s Potential Demand
One of the driving forces behind the potential approval of Bitcoin ETFs in Australia is the country’s pension sector. With a pension sector worth 2.3 trillion dollars, the demand for these ETFs is expected to be substantial. Institutional investors and pension funds are increasingly recognizing the value of cryptocurrencies as assets and are seeking exposure to this emerging market.
Bitcoin as a Valuable Asset
Bitcoin’s status as a valuable asset is a key factor driving the interest in ETFs, not just in Australia but globally. The limited supply of Bitcoin and its ability to act as a store of value make it an attractive investment option. As more institutional investors acknowledge its potential, the demand for Bitcoin ETFs continues to rise.
Launch of Ethereum Spot ETFs
Alongside Bitcoin ETFs, Australia is also planning to launch Ethereum spot ETFs. Ethereum, being the second-largest cryptocurrency by market capitalization, holds significant appeal for investors looking to diversify their portfolios. The introduction of Ethereum ETFs provides additional investment opportunities in the crypto market and expands the range of options for investors.
Impact of ETF Approval by Wirehouses
The potential approval of ETFs not only in Australia but also by major wirehouses like Morgan Stanley and UBS could have a significant impact on the adoption and acceptance of cryptocurrencies. The involvement of such established financial institutions brings a level of credibility and legitimacy to the crypto market, potentially attracting more investors and increasing overall market liquidity.
In conclusion, Russia’s preparation for a total crypto ban reflects its desire to maintain control over its financial ecosystem and strengthen the dominance of the ruble. While this may seem contradictory to their previous interest in Bitcoin, it aligns with Putin’s strategy to counterbalance the influence of the US dollar. On the other hand, Australia’s plan to approve BTC and ETH ETFs demonstrates growing acceptance and adoption of cryptocurrencies, driven by the potential demand from institutional investors and the pension sector. The approval of these ETFs by wirehouses could further accelerate the acceptance and adoption of cryptocurrencies on a global scale.
