To ban or not to ban? Russia worries about growth in crypto transactions

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The Russian central bank wants to ban cryptocurrency investments in Russia, citing the growing number of crypto transactions as a threat to financial stability.

Russia reflects on crypto ban

Russia’s central bank is trying to ban investments in cryptocurrencies, exacerbating the country’s long-standing distrust of Bitcoin and other digital assets. Future transactions would be prohibited, but current holders would not be required to sell their holdings.

According to Russian authorities, cryptocurrencies can be used for money laundering and terrorist financing. According to Reuters, the bank’s current stance on the cryptocurrency is a “complete rejection.”

Although it is still illegal in Russia to conduct cryptocurrency transactions, a new amendment made it possible to invest and buy cryptocurrencies through exchanges.

Such limitations could stifle the current boom in retail investment in Russia, which has seen 15 million Russians set up brokerage accounts in recent years, according to Central Bank estimates.

The regulator has already acted swiftly to restrict access to other types of risky investment products, anticipating that Russia’s weak financial culture and the strong marketing of brokers could cause consumers to be drawn into high-end investments. risk. If they want to invest in things like options and derivatives, retail investors must pass a series of exams.

Elvira Nabiullina, Governor of the Central Bank of Russia, heightened fear, uncertainty and doubt (FUD) around the current state of the country’s crypto regulation during a press conference on Friday. When asked about the boom in digital assets, Nabiullina said the following, according to finmarket.ru, a local outlet:

“You know that our attitude towards cryptocurrencies is, to say the least, skepticism. Added to this are the significant risks for retail investors and the significant volatility of these types of assets. Additionally, cryptocurrencies are opaque as they are frequently used for illegal or criminal operations. Therefore, we cannot accommodate investments in them. We seek to prevent the Russian financial infrastructure from using crypto transactions It is quite doable.

Related article | Russia plans to seize illegally acquired cryptocurrencies

Illegal minors will be imprisoned

Andrey Lugovoy, member of the lower house of parliament, the State Duma, threatened minors with jail if they connected their equipment to the power grid without permission.

Lugovoy revealed in November that his nationalist party, the Liberal Democratic Party of Russia, was preparing to introduce a bill to govern crypto mining. According to the congressman, the approval of the legislation will help Russian nationals, the state and entrepreneurs who legitimately wish to engage in business.

He now added, in an interview with Russian online news site Lenta.ru, that mining regulations made sense. In addition to charging mining companies variable electricity prices, the MP believes their profits should be taxed after deducting the cost of energy consumed and other expenses such as labor. Lugovoy accused the miners of avoiding paying taxes by using subsidized and cheap electricity.

BTC crashes at $ 46,000 | Source: BTCUSD on TradingView.com

Related article | Held responsible: Russia wants Bitcoin investors jailed for non-compliance

Featured image from Pixabay, chart from TradingView

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