Crypto News

Russian central bank calls for complete ban on cryptocurrencies

Russia already bans cryptocurrency use as a payment method for goods and services. The report did not mention any additional sanctions for violators of this rule.
The Russian central bank has called for a blanket ban of cryptocurrencies. It cited them as being “volatile” and used in illegal activities, and a threat the country’s financial stability and citizens’ well-being.

“Cryptocurrencies”: Trends, Risks, Measures” reported that cryptocurrencies offer a way for people to withdraw their money from the national economy. This could undermine the system and make it more difficult for regulators to maintain optimal monetary policies.

This is weeks after the Central Bank of Russia had announced plans to collect information about private money transfers from commercial banks, including details of clients who trade in cryptocurrency in Russia and abroad.

Although the country has granted cryptos legal status in 2020, Russia already bans cryptocurrency from being used as a payment method in exchange for goods and services. The latest report focuses on the possibility of additional sanctions for violators.

According to reports, the bank is also working on its own digital currency (CBDC), or the digital ruble. This is a move that it considers the future of banking in the nation, satisfying citizens’ desire for fast, efficient, and inexpensive payment options.

It also wants to rid itself of all cryptocurrency-related financial infrastructure. The report suggested that, in addition to the ongoing ban on Russian mutual funds investing in cryptocurrency, institutional investors in the country should not invest in it. Financial organizations in the country should not hold crypto assets. This has been subject to appropriate punishments.

This is just the beginning of a long list. The report stated that crypto-circulation must be prohibited in the country. This includes online trading desks, peer-to-peer platforms and over-the-counter trading desks. However, it also raised concerns about the possibility of its issuance.

It is best to ban cryptocurrency mining in Russia

Russia is the second largest mining country, trailing only the USA (35.40%) and Kazakstan (18.10%) as of August 2021. This is according to the Cambridge Bitcoin Electricity Mining Index.