Russia Just Proposed a Blanket Ban on Cryptocurrency
Russia has proposed a total crypto ban, this includes both mining and the use of cryptocurrencies. The country’s Central Bank has suggested that cryptocurrency trading must stop immediately. In the report presented in an online press conference, the Russian government and the Bank of Russia suggested this regulatory measure. This general ban on cryptocurrency was linked to the risks of financial instability and the rise of illegal activities. The digital asset apparently posed a serious threat to the sovereignty of Russian monetary policy. Russia ranks third in bitcoin mining after the United States and Kazakhstan.
This recent cryptocurrency ban comes just after the Central Bank of Russia showed interest in securing information from commercial banks regarding private money transfers. He also clarified that the information collected will include details of people who have traded cryptocurrencies in the past, not only within the country but also outside of it. Although Russia legalized cryptocurrencies in 2020, it has always remained skeptical about their acceptance as a medium of exchange. The report states that this crypto ban measure could after all be in favor of Russia, as this decision happens to be the “best” and “optimal” one that protects Russia.
“Cryptocurrencies: Trends, Risks, Measures”
In the report, “Cryptocurrencies: Trends, Risks, Metrics,” an excerpt states that cryptocurrencies “give people an outlet to withdraw their money from the national economy, thereby undermining it and making it more difficult for regulators to maintain optimal monetary policies”. The other major concern that led to this ban was the ever more dynamic and volatile nature of cryptocurrency as well as illegal activities funded by the digital asset. The highlight urged the Central Bank to come up with new laws and regulations that could help ban the digital asset in Russia.
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Russia has also expressed concerns about cryptocurrency, as it believes the asset could be used for money laundering and even terrorist financing. According to reports, Russia has shown interest in creating its own digital currency (CBDC), which is supposed to enable, equip and finally empower the operation of the country’s future banks.
This could help Russians opt for a faster, easier and more transparent payment option. The report also states that there will be a ban on mutual fund investments in cryptocurrency. In addition to this, institutional investors have also been discouraged from investing in crypto. The move could be a blow to financial organizations in the country, as any cryptocurrency in the form of a financial asset will not be considered. Failure to comply with the above mandated resolution will result in a firm sanction as stated in the report.
The crypto industry's growth has attracted a lot of negative attention | Source: TOTAL-CRYPTOCAP on TradingView.com