Russian banks have tools to restrict crypto investment, the governor hints – supervising Bitcoin news
The Central Bank of Russia reiterated its opposition to cryptocurrency investment on the grounds that the volatility of digital assets is the key motivation for its conservative stance. Governor Elvira Nabiullina recently stated that regulators have ways to restrict them.
Nabiullina insists that Russian banks can limit investment in crypto assets
The head of the Central Bank of Russia (CBR) Elvira Nabiullina stated in an online conference that Russian monetary authorities do not welcome Russian citizens to invest in cryptocurrencies. Press conference this week. She emphasized that their volatility and potential use in criminal activities are the main reasons for the regulator’s position.
The governor also noted the position of the Bank of Russia that Russia’s financial infrastructure should not be used to facilitate cryptocurrency transactions. She emphasized that regulators have the ability to impose restrictions and reiterated the bank’s skepticism about these assets. The governor of the Russian Central Bank quoted the business news portal RBC as saying:
Due to the high volatility and use of illegal activities, cryptocurrency poses a huge risk to retail investors, so we do not welcome investment in such assets.
Nabiullina issued a statement after media coverage disclose Russian authorities are now discussing the choice between two very different methods of regulating cryptocurrencies and related activities.Although Russian banks are seeking to ban the purchase of cryptocurrencies, State Duma Rules for coin mining and trading are being formulated.Despite CBR regulations, these will legalize cryptocurrencies be opposed to Free circulation, including for payment.
Earlier this week, Reuters quoted a source close to CBR as saying that the monetary authorities are negotiating with market participants on the possibility of prohibiting Russian investors from acquiring crypto assets in the future??. One of them revealed that the current position of the central bank is to “completely reject” one of the cryptocurrencies. Industry experts warn that this move will push crypto investors underground and prevent the state from levying taxes.
However, according to Anatoly Aksakov, chairman of the Parliament’s Financial Market Committee, lawmakers are still considering the legalization of crypto transactions, which will allow taxation of related profits and income. Aksakov stated that the State Duma had passed a draft law on the Russian Federation’s taxation of encrypted transactions during its first reading. The bill was submitted to the House of Representatives in December last year, and the bill recognizes digital currencies such as Bitcoin as property for tax purposes.
Do you think the Bank of Russia will persuade other authorities to support a ban on cryptocurrency investment? Please let us know in the comments section below.
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