The central bank of Russia has proposed to impose a ban on the mining and use of cryptocurrencies and on cryptocurrency exchanges, Reuters reported Thursday.
According to a report issued by Russia’s central bank Thursday, crypto has the characteristics of a financial pyramid that could pose risks to financial stability, a person’s well-being and monetary policy sovereignty.
The Bank of Russia proposed restricting financial institutions from performing operations involving the digital currency and said that systems should be in place to bar transactions that seek to sell or purchase crypto for fiat currencies.
In 2020, cryptocurrency achieved legal status in Russia but the country prohibited its use as a mode of payment.
The central bank associated crypto mining with energy consumption-related problems and noted in the report that crypto users in Russia perform transactions worth about $5 billion per year.
The bank said it would collaborate with authorities in countries where cryptocurrency exchanges are registered to gather information on Russian clients’ operations.
Crypto exchange Binance told the news agency that it would work with regulatory agencies and hoped the central bank’s report would result in discussions to safeguard Russian crypto users’ interests.
On Jan. 27, the Potomac Officers Club will bring together distinguished government and industry leaders to discuss the national security aspect of digital currencies. National Cyber Director Chris Inglis will deliver the keynote speech at POC’s Digital Currency and National Security Forum.
Register now for this virtual event via the POC Events page.