Russia’s central bank has become the latest to potentially put the anchors on crypto-asset investing for its citizens. Like many before it, the central bank has cited risks to financial stability according to reports.
According to a Dec 16 Reuters report citing “financial market sources close to the bank,” the Russian central bank wants to ban crypto investing within the country.
The report went on to state that Russian regulators have long echoed the sentiment that cryptocurrencies can be used for money laundering and terrorism financing.
They have been banned as a means of payment but were permitted for trading and investment in 2020. It appears that the central bank is now seeking to overturn that as well.
Russian crypto ban imminent?
Reuters reported that the central bank is currently in talks with “market players and experts” about a possible outright ban. One source stated that it could apply to new crypto purchases but may not be applicable to those bought previously;
Another source close to the Bank of Russia said the central bank’s current position was a “complete rejection” of all cryptocurrencies.
The bank has stated that it is preparing an “advisory report” to update the situation but did not confirm or deny that it was about to ban crypto trading and investing.
Russia’s annual crypto trading volume is around $5 billion according to central bank data.
“The situation in developed market countries more and more resembles the so-called shadow financial system,” stated Central Bank First Deputy Governor Ksenia Yudaeva.
In September, the Russian central bank started delaying payments to crypto exchanges. Citing consumer protection, it stated that the move was meant to prevent “emotional” purchases of digital assets.
In August, Russia’s Federal Financial Monitoring Service hired a company to develop new crypto tracking tools in an effort to combat illicit activity.
Shadowing China
The move appears to be in the shadow of China’s crackdowns in recent years. Just like China, Russia is also experimenting with its own CBDC, the digital Rouble. Central banks in the region are likely to increase their efforts to quash crypto as they roll out their own highly controlled and centralized digital currencies.
The Bank of Thailand has also issued warnings over crypto and stated that using them as a method of payment is forbidden. The central bank is also preparing to crack down with its own report on “red lines” for the crypto industry in the Kingdom.
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