The Central Bank proposes to introduce a ban on the issuance and circulation of cryptocurrencies in Russia

AK&M 20 January 2022 16:27

The Bank of Russia proposes to introduce a ban on the issuance, organization of circulation of cryptocurrencies, including crypto exchanges, crypto exchanges, P2P platforms, on the territory of Russia and establish responsibility for violating this ban. This is evidenced by the materials of the regulator.

The Central Bank advocates the introduction of liability for violation of the legislative prohibition on the use of cryptocurrencies as a means of payment for goods, works and services sold and purchased by legal entities and individuals who are residents of the Russian Federation.

The regulator also proposes to introduce a ban on investments of financial organizations in cryptocurrencies and related financial instruments, as well as on the use of Russian financial intermediaries and Russian financial infrastructure to carry out transactions with cryptocurrencies and establish responsibility for violating this ban.

According to the Bank of Russia, the potential risks of financial stability associated with cryptocurrencies are significantly higher for emerging markets, including Russia, in particular, due to the traditionally higher propensity to currency and insufficient level of financial literacy.

Developed countries, especially with reserve currencies, can still afford a softer attitude towards cryptocurrencies, following the path of gradual expansion of regulatory coverage, the Central Bank emphasizes.