Russian central bank to seek ban on investment in cryptocurrencies

MOSCOW: The Russian central bank would like to ban investments in cryptocurrencies in Russia, seeing risks to financial stability in the rising number of crypto transactions, two financial market sources close to the central bank said.

Russia for years spoke against cryptocurrencies, saying they could be used in money laundering or to finance terrorism. It eventually gave them legal status in 2020 but banned them from being used as a means of payment.

The central bank is now in talks with market players and experts about the possible ban, which, if approved by lawmakers, may apply to new purchases of crypto assets but not to those bought in the past, one of the financial market sources said, asking not to be named due to the sensitivity of the matter.

Another source close to the Bank of Russia said the central bank’s current position is a “complete rejection” of all cryptocurrencies.

Article continues after this advertisement

In a reply to Reuters request, the central bank said it was preparing an advisory report to voice its stance on the issue. It did not comment on specifics.

The annual volume of transactions with cryptocurrencies that Russians carry out is about $5 billion, according to the central bank. Its increasing popularity causes concerns about risks to financial stability, Central Bank First Deputy Governor Ksenia Yudaeva said earlier in December.

“The situation in developed market countries more and more resemble the so-called shadow financial system,” Yudaeva wrote in an article, adding that the use of cryptocurrencies lowers the efficiency of monetary policies.

Yudaeva, pointing at China’s experience, said Russia needed a further adjustment of cryptocurrency regulation.

In September, China intensified a crackdown on cryptocurrencies with a blanket ban on all crypto transactions and mining, hitting bitcoin and other major coins and pressuring crypto and blockchain-related stocks.

Meanwhile, the Bank of Russia is planning to issue its own digital rouble, joining the global trend to develop digital currencies to modernise financial systems, speed up payments and counter a potential threat from other cryptocurrencies.

- Advertisement -

3 COMMENTS

  1. Really good post! it’s a very informative article Keep sharing more useful and informative articles. Thank you
    Kosovo police seize 300 crypto mining machines amid electrical energy shortages
    The police in Kosovo have ramped up their efforts to crack down on crypto miners within the nation, confiscating greater than 300 mining machines on Jan. 8 alone.
    An announcement issued by the Kosovo police on Jan. 8 revealed that it had seized 272 “Antminer” Bitcoin mining machines within the municipality of Leposavic, and one other 39 mining machines close to Prishtina.
    cryptocurrencies

  2. Apparently, binary options is an all or nothing investment. I realized this after losing my Gratuity invested with BinaryTilt. After series of research and consultations with friends and families..I came a across a recovery team who helped me recover all the funds lost. I am excited to share this now that I have my money and also to help other Victims recover their funds too. You can reach out to them on their website : “{CRYPTOHEISTRECOVERY DOT COM}”
    WHATSAPP: +1 904 289 2594

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Must Read

Miftah Ismail leaves for Doha to hold final talks with IMF

Finance Minister Miftah Ismail on Monday claimed the nation is paying the price of wrong policies and agreements signed by the previous government with...