Considering Russia's ongoing war attempts, it seems that both countries want crypto restricted.
Due to the continuous conflict between the two nations, Ukraine has lately asked for "sabotage" of ordinary Russians' crypto holdings. Several of Russia's European allies are concerned that Russia may utilize crypto to evade Western sanctions.
Paradoxically, it looks that the Central Bank of Russia, or CBR, is one of the strongest supporters of banning regular Russians and financial institutions from accessing crypto. According to local news source tass.ru, the CBR is holding to its position of restricting crypto issuance, mining, and trading in the Russian Federation. As per a CBR official, "The Central Bank currently supports the position that was previously announced and published on the official website. Therefore, there is nothing to add today."
Nations often need to drastically boost their expenditures during wartime, like by printing additional money, to fund their military activities. Though because of this individuals are enticed to convert their native currencies for foreign currencies (such as, now, crypto) to secure their wealth.
However, this would put enormous selling demand on the local currency, causing exchange rates to rise and hindering war-funding efforts. As a consequence, throughout wartime, nations generally implement severe foreign exchange regulations, as Russia and Ukraine have already undertaken. Therefore the risks of crypto collapsing the Ruble and, by implication, weakening Russia's war activities may exceed the advantages of utilizing crypto to avoid sanctions.
The daily Tether (USDT) to ruble trade volume on Binance hit an all-time high of $35 million, as per a study published this week by Arcane Research. Members of the Russian social media community seem to be concerned about the ruble's declining value and how crypto can help them secure their savings. Roman Buchyn, a user, wrote:
"You need to buy something [cryptocurrencies]; the ruble will soon be cheaper than toilet paper."