"Amid Nigeria CBN Crytocurrency Ban, Russia set to Legalise Bitcoin"
At first sight, the headline appears to suggest that Russia is making reasonable progress with adoption of the crypto. But I beg to differ.
Let's take time to x-ray what regulation Russia is proposing. According to Nairametrics, here are what Russia crypto Regulations will entail:
Let's read between the lines.What you should know about Russia’s crypto adoption plan
1. The report stated that the circulation of crypto in the legal sector will be possible only with full identification, through the banking system or licensed intermediaries.
2. Operations equivalent to more than 600 thousand rubles (roughly $8,000) must be declared.
3. Transactions outside the legal sector for such amounts will become a criminal offense and an aggravating circumstance under the Criminal Code.
4. Fines will be introduced for the illegal acceptance of cryptocurrencies as a means of payment.
As a science student, this regulation of crypto brings to mind what we termed as PROTEIN DENATURING. Many things can denature protein. Heat is an example. And when protein is denatured, it loses its functions and purpose.
Now, with my vast experience in finance and Decentralised Finance (DeFi), the regulation by Russia will achieve no other purpose but to Denature DeFi.
Don't fall for it!
Crytocurrencies like Bitcoin, built on the block blockchain technology, are the building blocks of Decentralised Finance.
What is Decentralised Finance?
Decentralized finance, or 'DeFi', is an emerging digital financial infrastructure that theoretically eliminates the need for a central bank or government agency to approve financial transactions. ... The idea is that no single entity has control over, or can alter, that ledger of transactions.
Now look at points 1 and 2 in the quoted Russia regulation proposals.
In short, Regulating Crytocurrency like Russia is planning to do is synonymous to 'Centralizing ' a Decentralised Finance.
End of story.