The Russian Central Bank Has Requested a Complete Cryptocurrency Ban

According to a report, the Central Bank of Russia started today, Jan. 20, in a study that mining, trading, and use of digital currencies should be classified as unlawful.

The paper emphasises how volatile cryptocurrencies are and how they are commonly utilised in illegal activities like fraud and tax evasion. As a result, the usage of cryptocurrencies endangers the national economy by diverting “actual” money away from it and onto crypto. Additionally, cryptocurrencies are difficult to regulate, and authorities will have a difficult time enforcing monetary regulations over them.

The study specifically states that cryptocurrency issuance (mine) and circulation must be prohibited, as well as cryptocurrency trading on exchanges, OTC desks, and P2P platforms. Additionally, no financial institution should be permitted to invest in crypto assets.

Nonetheless, Russia does not seem to be abandoning its ambitions to begin testing the digital ruble this year, as U.Today previously reported. The planned anti-crypto legislation seems to be somewhat similar to China’s outright ban on crypto mining and trade last year, although nationwide trials of the country’s own CBDC, the digital yuan (DCEP), are already underway.

According to Forklog, which cites Bloomberg, the Russian Federal Security Service (FSB) pushed the country’s Central Bank to propose a crypto prohibition in order to stymie funding and contributions to government opposition organisations, including media sites.

However, if approved, this crypto prohibition might have a detrimental effect on Russia’s $92 billion in digital assets. However, according to Forklog, the proportion of this sum utilised to finance the government’s political opponents is negligible.

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