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Russia Mulls Crypto Ban: Report

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Thu, 12/16/2021 - 13:06
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Alex Dovbnya
Russia could join China in cracking down on the cryptocurrency industry
Russia Mulls Crypto Ban: Report
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Russia's central bank is seeking to impose a ban on cryptocurrency investing, according to a Reuters report that cites sources familiar with the matter.

Investors will be prohibited from making new purchases, but the ban will not extend to existing crypto holdings, as per the report.

Earlier this month, the Bank of Russia banned mutual funds from investing in Bitcoin and other cryptocurrencies.

In July, the central bank asked stock exchanges to refrain from listing both foreign and domestic cryptocurrency-oriented companies due to high volatility, insufficient liquidity and regulatory risks.

A source cited by Reuters claims that Russia's central bank uncompromisingly rejects cryptocurrencies.

In June, Oliver Hughes, CEO of Russian leading online bank Tinkoff, told CNBC that it could not offer crypto trading to its customers because of the Bank of Russia's policies:

There's no mechanism for us to offer that product to them in Russia at the moment because the central bank has got this very tough position.

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In July 2020, Russian lawmakers banned using cryptocurrencies as a means of payment while also outlining the legal status of the new asset class.

As reported by U.Today,  Alexei Moiseev, Russia's deputy finance minister, said there were no plans to ban residents from trading cryptocurrencies in October. At the same time, he mentioned that crypto payments would remain prohibited in the country since they would make it harder to control the money supply.

Digital ruble trials

Meanwhile, the trial of the digital ruble, Russia's central bank digital currency, is expected to kick off next year.

The final decision on the launch of the CBDC will be made after the pilot.

Earlier this month, the central bank announced that it would allow foreigners outside the country's territorial jurisdiction to use digital wallets, making it possible to exchange the CBDC with other currencies.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.