Russia’s top monetary regulator, the Central Bank of Russia, sees the rise in the number of cryptocurrency transactions as a risk to the country’s financial stability.
The current position of the Central Bank of Russia is a “complete rejection” of all cryptocurrencies.
Digital assets are legal in Russia, but they cannot be used as a means of payment, as the country’s control-obsessed government believes they could be used in money laundering or to finance terrorism.
Now, the Central Bank of Russia is mulling the idea of a complete crypto ban in the country. The regulator, reportedly, is currently discussing a possible ban with market players and experts and is preparing an advisory report to voice its position on the issue.
Should such ban be approved, it could apply to new purchases of crypto assets but not to existing portfolios.
According to the Central Bank of Russia, the annual volume of cryptocurrency transactions carried out by Russian citizens amounts to $5 billion.
In a review of financial stability released last month, the regulator said Russians were among the world’s most active participants in the cryptocurrency market.
In October, Russia‘s deputy finance minister said there were no plans to ban the purchase of cryptocurrencies abroad or the use of overseas-based crypto wallets.
Russian media reported in November that the government of Russia wants to tax crypto miners, as it sees mining as a business activity and its recognition as such would allow authorities to regulate the sphere and collect taxes.