The Bank of Russia proposed a complete ban on operations with cryptocurrencies in Russia
In order to reduce the threats posed by cryptocurrencies, it is proposed to prohibit: the use of cryptocurrencies as a means of payment; the issue and organization of circulation of cryptocurrencies; investments of financial institutions in cryptocurrencies.
As a separate item, the report mentions cryptocurrency mining, which is also proposed to be banned. The Central Bank is also going to take control of P2P payments for the purchase of crypto.
At the same time, the Central Bank stressed that they do not propose to introduce a ban on possession of cryptocurrencies for Russian citizens. Amendments to the legislation in connection with the proposals for the regulation of cryptocurrencies will be ready in the coming months.
The justification for the proposed measures are: the active use of cryptocurrencies in illegal activities (money laundering, drug trafficking, terrorist financing); the high volatility of the rate, a significant prevalence of fraud in cryptocurrency trading; the risk of undermining currency circulation and loss of sovereignty of the national currency.
The Central Bank estimates that citizens have invested 7 trillion rubles in crypto - almost three times more than the national stock market (2.6 trillion).
The FSB persuaded the head of the Central Bank Nabiullina to support a complete ban on operations with cryptocurrencies in Russia in order to limit the access of undesirable organizations and media-no-agents to funding, writes Bloomberg.
Unknown cryptoinvestor withdrew from the largest cryptocurrency exchange Binance in the amount of more than $83 million, after the idea of the Central Bank to ban cryptocurrency, writes RBC. On January 19, it became known that the Bank of Russia began to study the operations of Russian banks related to cryptocurrency exchanges.
Short-term investors who may need funds in the coming months may consider selling cryptoassets and withdrawing funds from cryptocurrency exchanges, some experts say. Others believe that no restrictions can destroy the crypto market, but they can free it from new and inexperienced participants who entered the industry last year.
"The Central Bank's bans signal restrictions on development. Investors, in fact, now use foreign infrastructure for trading and investment. The Central Bank is not going to change this, limiting only the arrival of crypto-business in Russia," notes the team of analysts at FxPro.