Russian Central Bank Plans Cryptocurrency Ban

The Russian central bank is moving forward with its anti-crypto stance and is planning to ban all cryptocurrency investments in the country, Reuters reported.

Citing two anonymous sources close to the regulator, the publication detailed that the move is being taken as the central bank is concerned over the risks to the country’s financial stability with rising cryptocurrency transactions.

Crypto Is Hot Among Investors

A recent central bank report revealed that Russians trade a total of $5 billion worth of cryptocurrencies a year, which happens to be the basis of its latest consideration behind banning crypto.

Regulations around cryptocurrencies are complicated in Russia. The country recognized cryptocurrencies as property last year but banned their usage as a payment mode.

Additionally, the Russian legislators tabled many other draft legislations around cryptocurrencies, concerning their taxation, holding, and several other areas but only a few of them have become the law.

The central bank has already started talks with local cryptocurrency market players and experts to bring the ban, but it is yet to receive a green light from lawmakers. If approved, the law will prevent fresh purchases of digital currencies in Russia, but it could not do much about existing cryptocurrency holdings by Russians, according to one of the anonymous sources.

Another source confirmed that the Russian regulator wants a 'complete rejection' of all cryptocurrencies.

Meanwhile, Russia is not the first major country to consider such harsh anti-crypto legislation. India is a step ahead and has already lined up a bill to be introduced in the ongoing parliamentary session that will ban the circulation of cryptocurrencies in the country. Both these countries are following the footsteps of China that successfully banned cryptocurrencies and is now pushing for a central bank digital currency (CBDC).