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Policy & Regulation

Russian Central Bank reportedly wants to ban cryptocurrencies

16 Dec 2021 : 14:34
2 min read
  • The central bank is currently talking to market players and experts about a possible ban
  • Russia has been vocal in its opposition to cryptocurrencies
  • The Bank of Russia recently banned Mutual Funds from investing in crypto

According to a report by Reuters, the Russian Central Bank wants to ban investments in cryptocurrencies in Russia.

Russia has spoken out against cryptocurrencies

According to the news report, the Central Bank is currently talking to market players and experts about a possible ban. If approved by lawmakers, it could apply to new cryptocurrencies, but not those purchased in the past. A source close to the Bank of Russia said the central bank’s current position is a “complete rejection” of all cryptocurrencies, but the Central Bank itself said it was preparing an advisory report to set out its position on the issue and did not comment on details.

Russia has been vocal in its opposition to cryptocurrencies, claiming they could be used for money laundering or terrorist financing. The country gave cryptocurrencies legal status in 2020 but banned their use as payment. According to the Central Bank, Russians’ annual volume of cryptocurrency transactions carried out is about $5 billion.

Investment funds were banned from investing in crypto

The Bank of Russia, the country’s top financial regulator, issued new rules for the country’s investment funds in a directive published on Monday. The new rules stated that funds cannot invest in digital currencies or in “financial instruments whose value depends on the prices of digital currencies.” In July, the regulator also banned Russian stock exchanges from listing financial instruments that depend on the prices of digital assets.

Meanwhile, the Bank of Russia plans to issue its own digital rouble, joining the global trend of developing digital currencies to modernize financial systems, speed up payments and counter a potential threat from other cryptocurrencies. The regulator had planned to launch a CBDC pilot program back in December but recently postponed the date.

About Author

Stan Colenbrander

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Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and crypto start-ups.

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