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The Central Bank of Russia has reaffirmed its opposition to cryptocurrency investments, citing the volatility of digital assets as the main reason for its conservative stance. Governor Elvira Nabiullina recently indicated that the regulator has the means to restrict them.
Nabiullina insists Bank of Russia can limit investments in crypto assets
Russia’s monetary authority is not welcoming Russian citizens’ investments in cryptocurrencies, Central Bank of Russia (CBR) chief Elvira Nabiullina said at an online press conference this week. She highlighted their volatility and potential use in criminal activities as the main reasons for the regulator’s position.
The governor also noted the Bank of Russia’s position that Russia’s financial infrastructure should not be used to facilitate cryptocurrency transactions. She stressed that the regulator is capable of implementing restrictions and reiterated the bank’s skepticism towards these assets. Quoted by the economic news portal RBC, the president of the Russian central bank clarified:
Cryptocurrencies carry great risks for retail investors due to their high volatility and use in illegal activities, so we cannot accommodate investments in such assets.
Nabiullina’s statements come after media revealed that Russian authorities are currently in discussions to choose between two very different approaches to regulating cryptocurrencies and related activities. As the Bank of Russia seeks to ban crypto purchases, the State Duma is making rules for mining and trading coins. These will legalize cryptocurrencies despite CBR opposition to their free circulation, including their use in payments.
Earlier this week, Reuters cited sources close to the CBR who indicated that the monetary authority was in talks with market participants over a possible ban on the acquisition of crypto assets by Russian investors in the future. One of them revealed that the central bank’s current position is that of a “complete rejection” of cryptocurrencies. Industry experts have warned that such a move would push crypto investors underground and prevent the state from collecting taxes.
However, according to the chairman of the parliamentary committee on financial markets, Anatoly Aksakov, lawmakers are also considering legalizing crypto trading that would allow the taxation of associated profits and income. Aksakov noted that the State Duma has already passed a bill on first reading to tax crypto transactions in the Russian Federation. The legislation, which recognizes digital currencies like bitcoin as property for tax purposes, was submitted to the house last December.
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Do you think the Bank of Russia will convince other authorities to support a ban on cryptocurrency investments? Let us know in the comments section below.
Lubomir Tassev
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