Russia has previously banned cryptocurrency payments and crypto investment trusts.
Last Thursday, the Russian Central Bank released a report proposing a complete ban on the use and mining of crypto-mining in the country.
Russian officials are concerned that the increasingly aggressive stance taken by cryptocurrencies could pose a threat to the stability of the country’s financial and monetary system.
“The potential financial stability risks associated with cryptocurrencies are much higher in emerging markets, including Russia.” According to the report.
Cryptography is a “bubble” and has serious environmental implications
The report further suggested that cryptocurrencies have the characteristics of a financial pyramid scheme. Because the rapid growth of digital assets is mainly related to speculative demand,bubble..”
Financial authorities also mentioned the environmental impact of crypto. He argued that energy-intensive crypto-mining violated the country’s green agenda and affected the energy supply.
In particular, the proposed ban does not affect crypto users with accounts in foreign jurisdictions. Elizabeth Daniloa, the bank’s head of financial stability, said in an online briefing that investors can trade cryptocurrencies on offshore exchanges.
Russia’s drive to ban cryptocurrency will protect the country’s financial stability and alleviate environmental problems. But, Bloomberg According to reports, there may be another push for the ban.
Citing people familiar with the matter, the central bank reported that central banks, like the Federal Security Agency (FSB), feared that cryptocurrencies could fund state opposition. I took a “ban” position on cryptocurrencies.
Contributing to liabilities through cryptocurrency is only a small part of the cryptocurrency use cases in Russia, but the FSB is experiencing growing concerns about donations.
Opposition to the political and technological industries
Russia has already shown that it prioritizes the creation of regulatory measures. House Speaker Vyacheslav Volodin argued last week that the House will focus on creating a regulatory framework for cryptography at its next spring session.
However, not all parties agree with the above proposal. Vladimir Gutnev, chairman of the House of Representatives Industry Committee, took a more tolerant position. Gutnev told Interfax that he wanted to tax and regulate cryptocurrencies rather than ban them outright.
He also recently told RIA Novosti that Russia may allow mining of cryptocurrencies and gold-backed stablecoins under the strict supervision of new regulators. Parliamentarians argue that coins and the like are important for both investors and companies and can play the role of the golden ruble.
Telegram CEO Pavel Durov has also opposed the idea of banning cryptocurrencies. Durov argued that such measures would only hinder the development of blockchain in the country. In his view, the ban would hamper development across many technical departments.