cryptoknowmics.com
After Russian President Vladimir Putin stated on national television that his army will execute a "special military operation" in Ukraine, global cryptocurrency and stock markets plummeted.
Putin Orders Ukrainian Soldiers to Return Home
On Thursday, Putin ordered a special military operation in Ukraine's Donbas region. He ordered the Ukrainian soldiers in the region,
“I implore you to put down your weapons now and return home. All Ukrainian army servicemen who meet this requirement will be entitled to leave the battle zone and return to their families.”
As the sun rose in Ukraine, the Russian army launched missiles throughout the nation, including the capital of Kyiv and the city of Kharkiv. The tension between the two countries has had a negative influence on global markets owing to fears that the conflict between the two countries could grow into a larger war involving other nations as well. According to a recent report, the price of Bitcoin has plummeted 7.26 percent to $35,000. Today, Ethereum (ETH) and Ripple (XRP) fell 9.48 percent and 9.42 percent respectively. Overall crypto market cap has fallen 8.25 percent to $1.58 trillion.
Ukraine Legalizes Crypto Trade
Last week, the Ukrainian government legalized cryptocurrency trade amid mounting tensions with Russia, whose troops had been stationed around Ukraine's borders, awaiting President Putin's decision. Recently, the Vice Prime Minister of Ukraine, Mykhailo Fedorov tweeted,
“Ukraine is already in top-5 countries on cryptocurrency usage. Today we made one more step forward: Parliament adopted the law on virtual assets! This will legalize crypto exchanges and cryptocurrencies, and Ukrainians could protect their assets from possible abuse or fraud.”
Donations of Bitcoin to various volunteers and hacking organizations have skyrocketed in the last year or two since the threat of an invasion has been hovering for a long time. According to a report by blockchain analysis provider, Elliptic, in 2021, some of these donations have been used as equipment for government troops. Vitalik Buterin, the founder of Ethereum, has lived in Kolomna, Russia for six years, tweeted in Russia about how disappointed he is with Putin’s decision.
“Abandon the possibility of a peaceful solution to the dispute with Ukraine. This is a crime against the Ukrainian and Russian people. I want to wish everyone security, although I know that there will be no security. Glory to Ukraine." Later, he tweeted in English: “Reminder: Ethereum is neutral, but I am not.”
Last week, Russia unveiled new cryptocurrency regulations. As per Russian media, Bitcoin may be classified as a foreign currency. This implies that licensed providers will be able to accept cryptocurrency transactions. However, crypto will be required to be converted into native rubles for daily transactions. Cryptocurrency transactions of about 600,00 rubles will need to be approved by tax authorities. Altcoin Sherpa, retail cryptocurrency trader, and Atlas DEX advisor tweeted about the Ukraine-Russia crisis that has escalated like a wildfire. https://twitter.com/AltcoinSherpa/status/1496685587822256130?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1496685587822256130%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fbitcoin-plunges-as-putin-announces-special-military-operation-in-ukraine