Previously, the regulator decided to find out how much money citizens spend on digital assets.
Bank of Russia wants to introduce a ban on investing in cryptocurrencies. About this, referring to two sources familiar with the regulator’s plans, writes Reuters.
According to interlocutors for the publication, the Bank of Russia is starting to consider plans to ban cryptocurrencies in the country due to the growing number of transactions with digital assets. According to the regulator, the new instrument may pose a risk to the financial stability of the Russian Federation.
Sources draw attention to the fact that the Bank of Russia is currently discussing the possibility of introducing a ban with market participants.
According to the publication’s interlocutors, if approved, the restrictions will apply to the purchase of new digital assets. Cryptocurrencies that Russia acquired in the past will not be affected by innovation.
One of the Reuters sources claims that the Bank of Russia intends to completely abandon digital assets. Representatives of the regulator do not comment on the information that interlocutors share with the publication. At the same time, the Central Bank notifies about the preparation of advisory reports. It will announce the official position of the Bank of Russia on cryptocurrencies.
The position of cryptocurrency in Russia
Recall that cryptocurrencies received legal status in the Russian Federation on January 1, 2021. According to current legislation, Russians can carry out transactions with digital assets. At the same time, citizens of the Russian Federation are prohibited from using cryptocurrencies as an alternative to the ruble.
The head of the Bank of Russia Elvira Nabiullina has repeatedly criticized the new financial instrument. For example, in June 2021, a banker named buying cryptocurrency as one of the riskiest savings strategies. Among the drawbacks of digital assets, he highlighted the inability to protect investors’ rights. According to Elvira Nabiullina, bitcoin and similar cryptocurrencies cannot be classified as “currencies”.
It is noteworthy that in anticipation of the appearance on the network of information about the plans of the Bank of Russia to ban investment in digital assets, the Central Bank team decided to find out how much money Russians spend on the purchase of new financial instruments. .
According to the director of the Central Bank’s department of financial stability, Elizaveta Danilova, Russian citizens’ investment in cryptocurrencies has become a “potentially very significant problem.”
Fighting the windmill
Despite the criticism of financial instruments, Elizaveta Danilova draws attention to the cross-border nature of the digital asset market. According to him, even the imposition of an outright ban on investments in cryptocurrencies by the regulators of the Russian Federation will not become an obstacle to the purchase of financial instruments by Russia. Elizaveta Danilova explains her point of view by the fact that, if necessary, citizens of the Russian Federation will be able to find tools for buying cryptocurrencies from foreign intermediaries.
Keep in mind that bitcoin and similar cryptocurrencies are decentralized. This approach excludes the possibility of blocking one system control center. To stop bitcoin, the authorities must find and disconnect all miners from the cryptocurrency network, as well as withdraw BTC from all investors. Many members of the crypto community conduct transactions with digital assets anonymously. Preserving the privacy of some users will prevent regulators from implementing the plan.
Also, the authorities have no influence on the creators of the most capitalized cryptocurrency – bitcoin. This digital asset was launched by the developer under the nickname Satoshi Nakamoto. Who he is and where he is is unknown.
Recall that in the fall of 2021, against the backdrop of regulatory pressure on participants in the crypto community in China, Russia entered the top 3 mining hubs.