Bank of Russia has tools to restrict crypto investments, information from the governor-regulation
Bank of Russia has tools to restrict crypto investments, information from the governor-regulation
The Russian central bank has confirmed its rejection of investments in cryptocurrencies and cited the volatility of the digital assets as the main motive for its conservative attitude. Governor Elvira Nabiullina recently indicated that the regulatory authority has the funds to restrict them.
nabiullina insists that the Bank of Russia can limit investments in crypto-assets
Russia's currency authority does not welcomes investments in cryptocurrencies, said the head of the Russian central bank (CBR), Elvira Nabiullina, during an online press conference this week. As the main reasons for the position of the supervisory authority, it highlighted its volatility and potential use in criminal activities.
The governor also pointed out the attitude of the Bank of Russia that the Russian financial infrastructure should not be used to facilitate cryptocurrency transactions. She emphasized that the regulatory authority was able to implement restrictions and confirmed the bank's skepticism to these assets. Quoted from the RBC economic news portal, explained the chairman of the Russian central bank:
cryptocurrencies are covered by major risks for private investors, so that we cannot welcome investments in such assets.
nabiullina's statements come according to media reports that the Russian authorities are currently Discussions have between two very different approaches to regulate cryptocurrencies and associated activities. While the Bank of Russia is trying to prohibit crypto purchases, State duma developed rules for coin mining and exchange. These will legalize cryptocurrencies despite the CBRS opposition in their free traffic, including their use in payment transactions.
At the beginning of this week, Reuters cited CBR-close sources that pointed out that the currency authority is negotiating with market participants about a possible ban on the future acquisition of crypto assets by Russian investors. One of them revealed that the current position of the central bank is a "complete rejection" of cryptocurrencies. Industry experts have warned that such a step would drive crypto investors underground and prevent the state from lifting taxes.
According to the chairman of the Parliamentary Financial Market Committee, Anatoly Aksakov, the legislator also consider the legalization of the crypto trade, which would enable the associated profits and income. Aksakov noted that the State Duma has already accepted a draft law to tax crypto transactions in the Russian Federation in the first reading. The law, which recognizes digital currencies such as Bitcoin as tax property, was presented to the house last December.
Do you think the Bank of Russia will convince other authorities to support a ban on cryptocurrency investments? Let us know in the comment area below.
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