The Russian government reportedly blacklisted OKX’s IP address on Wednesday for possible illegal activity related to a violation of Article 15.3 of Russia’s information law, reports said.

According to Roskomnadzor, Russia’s internet censorship regulator, the Seychelles-registered cryptocurrency exchange disclosed information associated with “financial pyramid activities.”

Roskomnadzor noted that the information includes details on the “provision of financial services by persons” who are not authorized to do so under federal law.

Article 15.3 safeguards against, among other things, the dissemination of false information, threats to financial institutions, and appeals for extremist behavior.

No specific cause for the website block has been made public as of this writing.

Crypto Exchange Owners: What’s Going On?

Even the owners of blocked websites, according to Roskomsvoboda founder Artem Kozlyuk, typically have no idea why they have been banned, and the only way to find out is to file complaints with Roskomnadzor.

Roskomsvoboda is a non-governmental organization (NGO) that advocates for transparent self-regulatory structures and digital rights protection for Internet users in Russia.

Roskomsvoboda is a parody of the Russian censorship body Roskomnadzor, in which “nadzor” (which translates to ‘oversight’) has been substituted by “svoboda” (‘freedom’).

OKX, which was founded in China, does not abide by Western sanctions against Russia. OKX is popular for its support of Manchester City soccer and motor racing.

Image: Gulf Crypto

OKX May File Lawsuit Vs. Russian Regulator

The third-largest cryptocurrency exchange by trading volume, OKX reportedly ignored a petition from South Korean regulators to suspend accounts associated with Terraform Labs co-founder Do Kwon.

OKEx is not the first cryptocurrency exchange to be closed by Russia. In June of last year, a Russian court ordered the suspension of Binance’s website on the grounds that the issuance and use of bitcoins are entirely decentralized.

Similar to Binance’s IP block, OKX may file a lawsuit against Russia’s internet censorship bureau to figure out the precise cause for the prohibition and, maybe, have it lifted.

Russia’s Stance On Bitcoin – To Ban Or Not To Ban

The Russian government continues to examine and evaluate its policies on the rapidly emerging crypto asset as other countries continue to adopt Bitcoin in their financial infrastructure.

Nevertheless, Russia has taken significant moves with regard to cryptocurrencies, since the government has just authorized the use of cryptos for international transactions.

So far as we can tell, the Central Bank of Russia has been persistently opposed to cryptocurrencies, but Ivan Chebeskov, chief of the Financial Policy Department at the Russian Ministry of Finance, claims that the ministry has a more progressive stance on cryptocurrencies.

The CBR and the Finance ministry announced last month that they have reached a deal for cross-border payments in Bitcoin and other leading cryptocurrencies.

BTC total market cap at $389 billion | Featured image from Crime Prevention Security Systems, Chart: TradingView.com

For the first time, we’re seeing an individual U.S. state (in this case, New Jersey) pursue NFT-specific regulation in what is bound to be a messy situation.

A state bill, titled the ‘Digital Asset and Blockchain Technology Act,’ has already passed assembly and is on its way to the Senate – where speculators have largely expressed belief that it will pass.

Let’s dive into all you need to know regarding this bill and it’s potential implications on NFTs and crypto.

New Jersey: No Stranger To Crypto Enforcement

New Jersey is not foreign to the concept of ‘cracking down on crypto.’ There’s a variety of examples of this, but one recent memory surrounds the now defunct CeFi platform, Celsius. Celsius was based in New Jersey, and the state was one of the first to put the clamps on Celsius’ operations. Several other states, such as Alabama and Texas, followed suit, and less than a year later, Celsius operations closed and the company was chalked up as another 2022 bear market domino to fall.

Now, state regulators are back again, this time looking to establish a “Nationwide Multistate Licensing System” for NFT issuers. At it’s face, should this bill pass, it looks to be little more than an unnecessary, unenforceable piece of regulation that will serve little good to independent creators and collectors in the state.

Crypto's coming out strong to start 2023; is it a massive bull trap, or a sign of changing times? | Source: CRYPTOCAP:TOTAL on TradingView.com

What It Means For Crypto Users

Crypto users that are based in the state of New Jersey, according to the language in the proposed bill, will not be able to “engage in a digital asset business activity” as a business or individual in the state without registering for a license. The licensure oversees anything from custodial services to “issuing a digital asset” – i.e., something as simple as minting and selling an NFT.

Crypto and NFTs are littered with nuance, making regulation a near necessity but simultaneously, a massively difficult task. While custodial services that are managing processes around tokens on behalf of customers is undoubtedly an area that deserves regulation, that regulation should not encompass works from an independent visual designer who wants to mint an NFT collection. It’s unfortunate that New Jersey legislators are not working to establish terms that differentiate these two worlds.

Furthermore, there is plenty to be said for enforcing this sort of regulation. While enforceability against major firms, like the aforementioned Celsius, is much more manageable, the feasibility of enforcing this bill is unclear – and the legislation leaves us with more questions than answers.

Crypto communities are notorious fans of anonymity and living ‘internet-first,’ where geographical bounds are far from essentially and less identity-defining than ever before. It leaves us with the belief that for the general public, it will be difficult – if not impossible – for regulators to manage.

At best, perhaps it can set guardrails for corporate entities engaging in the space.