Privately held cryptocurrencies may soon no longer be used in Russian financial markets.
According to the Russian news agency TASS, the deputy governor of the Bank of Russia Vladimir Chistyukhin signaled that private cryptocurrencies could soon become extinct in the financial markets.
“I’ll give you a hint: We don’t see any place for cryptocurrencies in the Russian financial market,” TASS quoted Chistyukhin as saying.
Russia believes private cryptocurrencies would pose a money laundering and terrorist financing threat, which has made the country a vocal critic of digital assets.
Following in the footsteps of China and India, Russia recently began stepping up its campaign to curb the use of cryptocurrencies. However, this action could contradict what the Russian government said in October that the government would not enforce a complete ban on cryptos.
TASS quoted Chistyukhin as saying that the central bank was preparing a report on proposals to limit such currencies in Russia.
According to Reuters reports last week, the Russian central bank spoke out in favor of a “total rejection” of private cryptocurrencies as it sees risks to financial stability from the increasing number of crypto transactions.
Cryptocurrencies are inherently decentralized and unregulated by the government, making them a potential threat to a nation’s financial stability.
The Bank of Russia draws attention to China and India’s experience of regulating cryptocurrencies and plans to further adapt its own regulation of digital currencies.
In September, China tightened its crackdown on cryptocurrencies with a blanket ban on all crypto transactions and “Mining“.
In the meantime, Bank of Russia wants to develop its own digital currency, or the ruble, to join the global trend.
According to a December 14, 2021 report by Blockchain.News, The Bank of Russia has issued new rules for mutual funds that conduct their business in the country and prohibits investments in cryptocurrencies.
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