Russia Central Bank Considering “Complete Rejection” Of All Cryptocurrencies

Digital assets are used in Russia, but they cannot be used as a means of payment, as the country’s government believes they can be used for money laundering or terrorist financing.

Reuters reports that the Central Bank of Russia sees the increase of crypto transactions as a risk to the country’s financial stability.

The source told Reuters that the current position of the Central Bank of Russia is the “complete rejection” of all cryptocurrencies.

Reuters report that the regulator is currently discussing a possible ban with market participants and experts and is preparing an advisory report to express its position on this issue. If approved, such a ban could apply to new purchases of crypto assets, but not to existing portfolios.

According to the Central Bank of Russia, the annual volume of crypto transactions made by Russian citizens is more than $5 billion. In a financial stability review published last month, the regulator said Russians are among the most active participants in the cryptocurrency market in the world. Russia Top bank thinks crypto increasing popularity causes serious concerns about risks to the country’s financial stability.

In June, CEO of Russian leading online bank Tinkoff, Oliver Hughes informed CNBC that it could not offer crypto trading to its customers because of the Bank of Russia’s policies.

In July, the Russian central bank asked stock exchanges to abstain from listing both foreign and domestic crypto-oriented businesses due to regulatory risks.

In October, the Russia Deputy Minister of Finance said that there were no plans to prohibit the purchase of crypto or the use of foreign cryptocurrency wallets.

In November, Russian media reported that the Russian government wants to tax miners.