Russia has proposed a blanket ban on crypto, which includes the mining and use of cryptocurrencies. The country’s central bank suggested that cryptocurrency trading must be stopped immediately. In a report published in an online press conference, the Russian government proposed the regulatory measure along with Russian banks. This blanket ban on cryptocurrencies is associated with increased risks of financial instability and illegal activity. Digital assets clearly pose a serious threat to the sovereignty of Russian monetary policy. Russia ranks third in Bitcoin mining after the United States and Kazakhstan.
this recently ban The news about cryptocurrencies comes after the Central Bank of Russia expressed interest in obtaining information on private remittances from commercial banks. It also stipulates that the information collected will include details of individuals who have previously traded cryptocurrencies in the country and abroad. Although Russia legalized cryptocurrencies in 2020, it has always been skeptical about accepting cryptocurrencies as a medium of exchange. The report states that this measure to ban cryptocurrencies may ultimately benefit Russia, as the decision happens to be the “best” and “best” decision to protect Russia.
“Cryptocurrencies: Trends, Risks, Measures”
In the report, “Cryptocurrencies: Trends, Risks, Measures” An excerpt reads that cryptocurrencies “provide a conduit for people to take money out of the national economy, thereby weakening it and making it more difficult for regulators to maintain optimal monetary policy.” A major concern is the increasing dynamics and volatility of cryptocurrencies, as well as illicit activities funded by digital assets. Its climax urged the central bank to create new laws and regulations to help ban digital assets in Russia.
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Russia has also previously expressed concerns about cryptocurrencies, as they believe the asset could be used for money laundering or even financing terrorism. Russia has reportedly shown interest in creating its own digital currency (CBDC), which is believed to enable, equip and ultimately enhance the functioning of the country’s future banking sector.
This can help Russians choose faster, easier and more seamless payment methods. The report also states that mutual funds will be banned from investing in cryptocurrencies. In addition to this, institutional investors are also reluctant to invest in cryptocurrencies. The move could deal a considerable blow to the country’s financial institutions, as any cryptocurrencies in the form of financial assets will not be counted. As stated in the report, failure to comply with the above authorization resolution will be subject to severe penalties.
The crypto industry's growth has attracted a lot of negative attention | Source: TOTAL-CRYPTOCAP on TradingView.com
