Russia will not ban crypto
The Bank of Russia intends to adopt laws to restrict the movement of cryptocurrencies in the nation rather than outright prohibit them, according to the TASS news agency.
Speaking to reporters in the State Duma on Monday, December 20, Deputy Chairman of the Central Bank Vladimir Chistyukhin warned that privately managed cryptocurrencies might be taken out of the country’s financial institutions in the near future.
In answer to a question on whether the Central Bank supports the prohibition of financial transfers from Russian residents’ bank accounts to cryptocurrency exchanges, the regulator stated:
“I think we will solve the issue through changes in legislation. There will be a more accurate definition of how cryptocurrencies can apply”
Chistyukhin went on to say that while Russian residents and corporations can acquire and store bitcoin, they cannot do so through local infrastructure or middlemen.
The Bank of Russia is working on a report in which it will outline its vision for the position of cryptocurrencies in the country banking world, he said:
“I think we will publish a report on cryptocurrencies in the near future. This report will contain our approaches to the place for cryptocurrency we see in the Russian financial market. I give a hint – we do not see a place for cryptocurrency in the Russian financial market,”
Elvira Nabiullina, the head of the regulator, previously declared that the country financial infrastructure should not be used for bitcoin transactions.
Indeed, according to two financial market insiders close to the central bank, the rising volume of cryptocurrency transactions is threatening financial stability, causing the bank to propose a ban on cryptocurrency investments in the nation.