Russia could ban crypto trading and mining

Monday 24 January 2022 13:57 CET | News

Russia's central bank has suggested making crypto trading, mining, and usage illegal, although owning crypto would be allowed.

The bank presented a report in which it states cryptocurrencies are volatile and widely used in illegal activities such as fraud. By offering an outlet for people to take their money out of the national economy, they risk undermining it and making the regulator's job of maintaining optimal monetary policies harder, the report said.

The bank, therefore, said Russia needs new laws and regulations to effectively ban crypto-related activities. The bank is not suggesting banning ownership of crypto by private citizens. The bank said in November 2021 that Russians conduct over USD 5 billion worth of crypto transactions in a year, and that level did not pose a risk.

Russian institutional investors should not be allowed to invest in crypto assets and no Russian financial organizations or infrastructure should be used for cryptocurrency transactions. The Bank of Russia has already barred mutual funds from investing in cryptocurrencies. Now, it is suggesting introducing penalties for breaking the ban.

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Keywords: cryptocurrency, mining, regulation, central bank
Categories: DeFi & Crypto & Web3
Countries: Russian Federation
This article is part of category

DeFi & Crypto & Web3