The Central Bank of Russia has proposed a total ban on cryptocurrencies.
The Central Bank of Russia is currently pushing for a broad ban on crypto-related operations such as issuance, transactions and mining, in line with its strong stance on decentralized digital money. According to regulatory council, the proposed restrictions are based on threats to financial stability and civil well-being.
Central Bank of Russia is catching up with public opinion on restrictive encryption policies.
In a paper entitled "Cryptocurrencies: Trends, Risks, and Countermeasures," the Central Bank of Russia advocates a ban on various cryptocurrencies. This document was published Thursday and regulators are open to comments and ideas on its content until March 1. In the report, the Central Bank of Russia (CBR) highlights the rapid expansion of the global crypto market over the past year and the $ 5 billion annual crypto trade by Russians.
At the same time, the bank emphasizes that the rise in value is mostly driven by speculative demand, which is developing a bubble, and that cryptocurrencies have financial pyramid characteristics. It claims that their spread poses a threat to Russia`s financial system's stability. monetarist policies.
To fight those risks and the capacity of crook conduct, the Bank of Russia plans to paintings with the Russian authorities and parliament on some of counseled criminal adjustments withinside the coming months. The creation of criminal legal responsibility for violations of the prohibition on the usage of crypto as a way of charge for items and offerings is one in every of them.
To counter these threats and potential criminal activity, the Central Bank of Russia will work with the Russian government and parliament to work on several proposed legislative amendments over the next few months. One of them is the introduction of legal liability for violators who have banned the use of cryptography as a means of payment for goods and services.
Central banks also oppose investing in cryptocurrencies, stating that financial institutions are banned from investing in cryptocurrencies and crypto-based financial products. It emphasizes that cryptocurrency operations should not be facilitated by Russian financial infrastructure or intermediaries.
According to the Central Bank of Russia, mining will increase public and private sector participation in the crypto market and cannot be overlooked. The Agency believes that the current level and extent of activity poses a serious threat to the environment and energy supply. According to CBR, banning is the best approach.
As China cracks down on industry, energy-rich Russia has become a hotspot for the mining industry. For many households with subsidized energy, cryptocurrency casting is not only a profitable business, but also an additional source of income. Authorities in some regions have expressed concern about the increased energy consumption that is straining the power grid.
The Central Bank of Russia will increase its scrutiny of cryptocurrency transactions. As part of these measures, we will work more closely with financial regulators in other countries to collect information on transactions involving Russian citizens in particular. However, as pointed out by Elizabeth Danilowa, head of the central bank's financial stability sector, the bank's plans do not impose restrictions on the possession of cryptocurrencies outside Russia.
The Central Bank of Russia last month showed that cryptocurrencies do not exist in the country's financial industry, before giving their views on cryptography in this study. According to media reports, no other Russian government organization shares his conservative position. The House of Representatives, the House of Representatives of the Russian Parliament, has established a working group.