Russia's central bank suggests a ban on crypto trade and mining

The Russian central bank has proposed to ban all cryptocurrency operations in the country, one of the world's largest centers for the breakdown of digital tokens.

According to the proposals published on Thursday in a 36-page report, Russia would prohibit the entire edition and operation of cryptocurrencies, prevent banks from investing in cryptocurrencies, blocking crypto for traditional currency and introducing statutory liability for the use of crypto for purchases.

"The breakneck growth and the market value of the cryptocurrency are primarily defined by speculative demand for future growth," said the central bank in the report.

"Cryptocurrencies also have aspects of financial pyramids because their price growth is largely supported by the demand for new market participants," she added.

After a high-ranking EU finance supervisory authority from the Financial Times had announced that the block was supposed to ban the mining method that is used to manufacture new bitcoins, an energy-intensive practice that is referred to as "proof-of work".

The Russian central bank also said that crypto would increase the already hot inflation by "restricting the sovereignty of monetary policy" and warned that it could be used "to operate illegal activities".

According to the central bank, the Russians deserved around $ 5 billion in cryptocurrency transactions last year. Russia also developed a flourishing mining industry after China banned this practice last year. Cheap electricity prices and cold temperatures in Eastern Siberia were a blessing for mining companies that rely on huge data centers with fast computers.

According to data from the Cambridge Center for Alternative Finance, Russia is the third largest cryptocurrency mining country after the USA and Kazakhstan. Huobi, one of the largest trading places according to volume, said in September that Russian users make up 10 percent of the company's bar trade.