The regulations for cryptocurrencies from the Federal department of several countries have tightened. As an added country to the list of revised regulations, Russia has joined now as the central bank demands a crypto ban. According to the report revealed on Thursday, the central bank of Russia claims that the country must ban cryptocurrencies.
The report states that trading, mining, and usage of cryptocurrencies are illegal activities. As crypto is volatile and investing in cryptocurrencies is risky, the country takes a step to prevent its people from pointing it out as fraudulent activity. The way of allowing consumers to withdraw money from the national economy risks the regulator’s job of maintaining optimal monetary policies. Additionally, the central bank of Russia was already discussing imposing a crypto ban in the country last month.
Therefore, the central bank demands new laws and regulations in Russia that can ban crypto-related activities. Significantly, acceptance of cryptocurrencies, a new organization, exchanges, and peer-to-peer platforms should be prohibited in Russia, says the report.
Banning Crypto Mining Is Optimal Solution
The bank suggests strengthening the punishments for breaking the ban. New punishments should be introduced for buying, selling, and dealing businesses in cryptocurrencies. The existing ban on handling crypto payments also should be revised. Moreover, the Bank of Russia has already banned mutual funds from investing in cryptocurrencies.
Consequently, no Russian financial institutions are allowed to do cryptocurrency transactions, and no Russian institutional investors should invest in digital-assets. On the other hand, the Russian regulators’ next target on the list is to prohibit crypto mining. In fact, crypto mining got some approval last year from the country’s parliament but now it has been criticized.
Thus, the regulator states that the “optimal solution is to ban crypto mining in Russia”, as it produces a fresh supply of cryptocurrencies. Besides, the central bank is strong in scrutinizing the regulations for the usage of cryptocurrencies. The bank plans to monitor Russian crypto transactions and information about Russian crypto users.
Furthermore, the Bank of Russia stated that the financial attractiveness of crypto assets might be substituted by digital assets. This will be issued in Russia under the law on digital assets, which has been in existence since summer 2020. Therefore, the country’s bank hasn’t clarified with complete information regarding regulatory measures but it will be updated with more information sooner.