The central bank of Russia is moving to bar investment in cryptocurrencies in the country amid a growing demand among investors for digital assets globally.
Russia’s apex bank is seeking to ban crypto investment following concerns about risks to financial stability due to the increased number of crypto transactions, Reuters reported citing two financial market sources close to the bank.
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Russia took an unfavourable stance against cryptocurrencies for years, arguing that they could be used to fund terrorism and result in money laundering.
Although the country legalised crypto last year, it does not allow the use of cryptocurrencies for payments.
The Bank of Russia is currently said to be in discussions with market players and industry experts in connection with the possible ban.
According to one of the unnamed sources, the ban could only pertain to the new purchases of crypto assets and not to those previously purchased.
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By GlobalDataAnother source close to the bank divulged that ban would mean a ‘complete rejection’ of all cryptocurrencies.
Bank of Russia, in its reply to the news agency’s request for comment, said that it is currently putting together an advisory report to announce its stand on the issue.
The bank did not comment on the specifics.
According to the Bank of Russia, the annual volume of crypto transactions in the country is around $5bn.
Earlier this month, Central Bank First Deputy Governor Ksenia Yudaeva voiced concerns about risks related to cryptocurrencies and stated that country requires further adjustment of crypto regulation.
Meanwhile, the Bank of Russia is preparing to roll out its own digital currency, joining the global trend in countries such as China, Nigeria, and India.
Recently, it was reported that India was proposing a bill to ban the trading of most cryptocurrencies with plans to initiate the adoption of a central bank digital currency in the country.
