The move is the latest step in global crypto regulation, as governments from Asia to the US fear highly volatile, privately run cryptocurrencies could undermine their control over the financial and monetary systems.
Russia has argued for years against cryptocurrencies, arguing that they can be used to launder money or finance terrorism. Finally, the country gave cryptocurrencies legal status in 2020, but banned their use as an official means of payment.
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Central Bank of Russia says speculative demand is the main factor determining the rapid growth of cryptocurrencies |
In a newly published report, the Russian central bank said that speculative demand is a major factor in determining the rapid growth of cryptocurrencies, while also warning of a potential bubble in the market, threatening to threaten financial stability and people’s lives. The bank proposes to prevent financial institutions from carrying out any operations with cryptocurrencies, stating that a mechanism should be developed to block transactions in order to buy or sell cryptocurrencies for fiat currencies ( fiat).
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The proposed ban covers cryptocurrency exchanges. According to Reuters, cryptocurrency exchange Binance said it was committed to working with regulators, and hoped the new report would spark a dialogue with the central bank about protecting the interests of its users. electronics in Russia. The central bank of Russia will work with regulators in other countries where cryptocurrency exchanges are registered to collect information about the activities of Russian customers.
The Russian side also showed how to restrict cryptocurrencies in other countries, such as China. But “at the moment, there are no plans to ban cryptocurrencies like China has done,” said Elizaveta Danilova, head of the financial stability department of the Central Bank of Russia.
Russia is the world’s third largest player in Bitcoin mining, after the US and Kazakhstan. According to the Central Bank of Russia, cryptocurrency mining has created a problem of energy consumption. “The best solution is to introduce a ban on crypto mining in Russia.” Now the Central Bank of Russia, which is planning to issue its own digital ruble, says the popularity of crypto-assets will limit the sovereignty of monetary policy.
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