The Russian Central Bank (CB) has prepared report, in which he advocated a complete ban on the mining, issue, circulation and exchange of cryptocurrencies. The regulator cited significant risks for the Russian financial market from the use of digital currencies as the reason for such a proposal.
“Introduce a ban on organizing the issuance and (or) issuance, organizing the circulation of crypto-currencies (including crypto-exchanges, crypto-exchangers, P2P platforms) on the territory of the Russian Federation and establish liability for violating this ban,” the document says.
The Central Bank claims that Russians can lose investments, the cryptocurrency itself is similar to pyramids, because it depends on the information background, and exchanges “often become targets of hacker attacks.”
Also, the Central Bank said that digital currencies pose a threat to the sovereignty of the Russian ruble and undermine the money circulation in the country.
The department noted that the process of “extraction”, mining, cryptocurrencies has a negative impact on the environment, as it consumes a large amount of electricity.
According to the proposal of the regulator, a ban on payment for any services and goods using cryptocurrencies for individuals, as well as legal entities that are residents of the Russian Federation, may be introduced.
At the same time, the Central Bank does not plan to prohibit Russians from storing digital assets and acquiring them on foreign sites.
Experts in the field of cryptocurrencies and mining commented on the proposal of the Central Bank of the Russian Federation to ban the production and circulation of this type of finance. Thus, the president of the Cryptocurrency and Blockchain Association, Yuri Pripachkin, believes that the Central Bank should learn to control the circulation of cryptocurrencies, and not try to ban it.
At the same time, cryptocurrency market analyst Viktor Pershikov said that the issue of banning cryptocurrency mining is very serious and the Central Bank should discuss it with experts in this field. He noted that he was not ready to unequivocally say that Russia would go for it.
As the regulator announced on December 3, the provision of services for the circulation of cryptocurrencies by financial organizations is contrary to the interests of investors. The Central Bank also questioned the need to issue Russian financial instruments in foreign currency.
Russian President Vladimir Putin in July 2020 signed into law a law regulating digital financial assets (DFA) and cryptocurrencies. As stated in the law, a digital currency is a set of electronic data that can be accepted as a means of payment that is not a monetary unit of the Russian Federation or a foreign state, as well as an investment. On the territory of Russia, it is forbidden to accept it as payment for goods and services.
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