The Russian central bank wants to ban investments in cryptocurrencies in Russia, citing the growing number of crypto transactions as a threat to financial stability.
Russia Mulls Over Crypto Ban
Russia’s central bank is attempting to outlaw cryptocurrency investments, escalating the country’s long-standing distrust of Bitcoin and other digital assets. Future transactions would be prohibited, but present holders would not be forced to sell their holdings.
Cryptocurrencies, according to Russian authorities, can be used for money laundering and terrorism financing. According to Reuters, the bank’s current stance on cryptocurrency is a “complete rejection.”
Although it is still illegal in Russia to undertake cryptocurrency transactions, a new amendment has made it permissible to invest in and buy cryptocurrencies through exchanges.
Any such limitations might stifle Russia’s current retail investment boom, which has seen 15 million Russians create brokerage accounts in the last few years, according to Central Bank estimates.
The regulator has already acted quickly to restrict access to other types of risky investment products, anticipating that Russia’s low financial literacy and strong broker marketing might lead to consumers being lured into high-risk investments. If they want to invest in items like options and derivatives, retail investors must must complete a series of examinations.
Elvira Nabiullina, the governor of the Central Bank of Russia, increased the fear, uncertainty, and doubt (FUD) around the country’s current state of crypto regulation in a…