Bank of Russia Proposes Broad Ban on Cryptocurrency Use, Trade and Mining – Regulated Bitcoin News

As with its tough stance on decentralized digital currencies, Russia’s central bank is now pushing for a broad ban on crypto-related activities such as issuance, exchange and mining. A consultation paper released by the regulator pointed to threats to financial stability and citizens’ well-being as one of the main reasons for the proposed restrictions.

Russian Central Bank Seeks Public Comments on Restrictive Cryptocurrency Policy

In a report titled “Cryptocurrencies: Trends, Risks, Measures,” Russia’s monetary authorities advocated a ban on a range of crypto activities. The document was released on Thursday, and the regulator will wait until March 1 for comments and recommendations on its content. In this document, the Central Bank of Russia (community rehabilitation) acknowledges the rapid growth of the global cryptocurrency market over the past year and the $5 billion in crypto transactions conducted by Russians.

At the same time, the bank noted that value growth is largely determined by speculative demand that is forming a bubble, and that cryptocurrencies have the characteristics of a financial pyramid. Their spread poses a threat to the stability of Russia’s financial system, the sovereignty of monetary policy and the well-being of its citizens, the report said.

Russian Bank Proposes Broad Ban on Cryptocurrency Use, Trade and Mining

To reduce the risk of these threats and illegal activities, Bank of Russia intends to work with the Russian government and parliament in the coming months on a series of proposed legal amendments.including the introduction of legal liability Violating the ban on the use of cryptocurrencies means of payment for goods and services.

Authorities often refer to cryptocurrencies such as Bitcoin and stablecoins as “currency substitute“This is prohibited by current Russian law. It now wants to ban their issuance and circulation in the Russian economy, including through digital asset exchanges and peer-to-peer platforms.

The central bank also has be opposed to Crypto investments and intends to prohibit financial institutions from investing in cryptocurrencies and crypto-based financial instruments. It insists that Russian financial infrastructure and intermediaries should not be used to facilitate cryptocurrency operations.

The Bank of Russia said that the mining industry also cannot be ignored, as it increases the participation of the population and the economy in the crypto market. The regulator believes that the current scale and further spread of activity pose significant risks to the environment and energy supply. Banning is the best solution, the CBR said.

In China repression In terms of industry, energy-rich Russia has become a mining hotspot. The minting of digital currency is not only a lucrative business, but also an additional source of income for many households that have access to subsidized electricity. Authorities in some regions have complained about rising energy consumption, which is putting pressure on the grid.

Bank of Russia plans to improve its monitoring of crypto operations. As part of these efforts, it intends to work closely with financial regulators in other jurisdictions, particularly to gather information on transactions made by Russian citizens. However, as Elizaveta Danilova, head of the central bank’s financial stability department, pointed out, the bank’s proposal does not envisage restrictions on the possession of cryptocurrencies outside Russia.

Before presenting its views on cryptocurrency regulations in this report, Russia’s central bank said last month that it believed no bit Cryptocurrency used in the country’s financial markets. Media reports suggest that other Russian government agencies do not share its conservative stance.One working team Established by the State Duma, the lower house of the Russian parliament, it is currently preparing proposals to comprehensively regulate the Russian crypto space.

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Do you want the Russian government to support the Russian bank’s proposal to restrict crypto activities? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.

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