Russia could join China in cracking down on the crypto industry

Russia continues its controversial approach to cryptocurrencies as the central bank now intends to ban such investments, according to a Reuters report, citing sources familiar with the matter.

Russia lifts crypto ban

The Russian central bank has now decided to take a very negative stance on the crypto industry. Accordingly, investors are excluded from new purchases, but the ban does not extend to existing crypto holdings. Earlier this month, the Russian central bank banned mutual funds from investing in Bitcoin and other cryptocurrencies.

In July, the central bank asked exchanges to restrict the listing of foreign and domestic crypto-oriented companies due to high volatility, insufficient liquidity and regulatory risks. In July 2020, Russian lawmakers banned the use of cryptocurrencies as a means of payment and outlined the legal status of the new asset class.

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As before, when the organization spoke out against the crypto industry, it outlined the alleged use of assets for malicious activity. Two sources familiar with the matter said the bank had started discussions with market participants and experts about the implementation of the ban.

If successful, the country will prohibit investors from operating with digital assets from this point onwards, while earlier investments will not be affected. For years, the largest country in the world by area has had controversial and inconsistent views about crypto space.

The idea of ​​a ban was in mind, but was never implemented. The country’s deputy finance minister – Alexey Moiseev – recently assured that the country has no intention of going the way of China and of imposing a complete ban on all cryptocurrencies. Some local banks, like Neobank, were quite open to the idea of ​​adding crypto services. However, others want more clarity on the regulations before going down this route.

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