In a report from last Tuesday, the Central Bank of Russia urges a total ban on local crypto trading and mining. The report, which had the title “Cryptocurrencies: Trends, risks, measures,” likens crypto to a Ponzi scheme. There should be a complete ban within Russia against crypto use.
The authors mention how cryptocurrencies are incredibly volatile and unpredictable. Not only that, many malicious individuals use crypto to pursue their illegal activities. The report also forewarned its readers that crypto could come as a risk to financial sovereignty, as it could help individuals take out money from the national economy.
The report reads as follows:
Included in the Russian central bank’s proposition is the total ban of crypto exchanges, peer-to-peer exchanges, and over-the-counter trading desks. The report also urged the reinforcement of severe punishments for anyone who violates the ban.
The report wants to ban crypto from the entire country, stating that continuing the ongoing mining activities will only bring about new supplies. As a result, this will lead to even more demand for crypto-related services and platforms. Not only will crypto mining subvert Russia’s green energy plan, but it can also impact the country’s energy supply.
After China’s intense crypto crackdown, Russia became the third-largest mining hub for Bitcoin. If the central bank’s blanket ban proposition is acted upon, it could ultimately lead to another significant change on the globe’s current crypto mining map.
A Bloomberg report states that the Russian Federal Security Service (FSB) played a significant role in pushing this ban. The report also mentions that the FSB is currently anxious about the ever-increasing number of untraceable funding via cryptocurrency.
It’s no secret that the Central Bank of Russia has always been wary of crypto. However, many believed that the Russian government would regulate the industry instead of banning it because president Vladimir Putin showed some interest in understanding how crypto worked.
