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Is Russia Set to Ban Bitcoin Pay? 101
Source: iStock/Oleg Elkov

Russia’s increasingly confusing cryptocurrency policy continues to develop – and the latest curveball is a proposed ban on payments made using Bitcoin and other cryptocurrencies.

Per a report from media outlet Izvestia, the country’s Central Bank and the regulatory Federal Financial Monitoring Service (known locally as Rosfinmonitoring) are preparing to issue a ban on all forms of crypto pay.

The news outlet says a “source familiar with the matter” informed it of the authorities’ intentions.

Izvestia says that the Central Bank has not confirmed the report, but indicated that it would support such a measure, which would likely seek to outlaw both purchases made with cryptocurrencies and payments made to employees in Bitcoin and altcoins.

The media outlet says that the Ministry of Finance would also likely support a crypto pay ban.

There are no confirmed reports about the possible penalties violators of the proposed ban would have to face, but Izvestia says,

“There are rumors about penalties, including possible criminal liability, with jail terms of five to eight years mentioned.”

The same media outlet quotes Antonina Levashenko, head of Moscow-based university RANEPA’s Russia-OECD Center, as stating that the move will not do away with the legal gray area that cryptocurrency operators currently find themselves in, but instead just deprive the government of tax revenue it could have garnered from cryptocurrency transactions.

Especially, when Russian bankers and their lawyers appear to have uncovered creative legal loopholes that could let tax authorities in the country tax crypto holders – without even having to change the country’s taxation code. Moreover, Soyuzmash, a body of Russian military and civilian vehicle makers wants the country’s Central Bank to grant it permission to accept cryptocurrency payments in international arms deals – as an attempt to circumvent sanctions.

However, as reported earlier in November, as Russia’s crypto legislation is taking a confusing shape, local experts do not rule out that it might effectively stop Russians from legally trading in Bitcoin, Ethereum and other major altcoins on regulated domestic exchanges.

Tim Alper , 2019-11-29 12:32:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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