Russia wants to ban cryptocurrencies

Russian Central Bank considers banning cryptocurrencies

The Central Bank of the Russian Federation put forward a suggestion to ban the issuance, mining and circulation of cryptocurrencies in Russia. As bank representatives said, one should not ignore an increase in risks associated with crypto assets in Russia against the background of the fact that the Russian ruble is not a reserve currency.

A report, which was published on the website of the Central Bank, highlights the need for a few amendments to the Russian legislation. Among other things, amendments suggest banning the issuance, mining and exchange of cryptocurrencies. The regulator also believes that banks should not invest their funds in digital assets, whereas operations to buy and sell cryptocurrencies for real money should be blocked.

"To introduce a ban on investments by financial organizations in cryptocurrencies and related financial instruments, as well as on the use of both Russian financial intermediaries and the financial infrastructure of Russia to carry out transactions with cryptocurrencies and establish liability for violation of this ban," the report from the Central Bank said.

In addition, the Bank suggests introducing responsibility for purchases in cryptocurrency. The Central Bank clarified that Russia accounts for eleven percent of the capacity for bitcoin mining. Russia ranks third in the world in terms of cryptocurrency mining.

Earlier, Bloomberg wrote that the Federal Security Service (FSB) of Russia persuaded Elvira Nabiullina, the Chairwoman of the Central Bank, to support the implementation of the ban on operations with cryptocurrencies. The FSB was concerned about the growth of payments in favor of opposition organizations, which are considered undesirable in Russia.

In total, there are about 17 million crypto wallets in Russia that hold a total of 7 trillion rubles. A very small part of this amount is used to finance the opposition, but the FSB fears that the situation will worsen.

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