According to fresh reports, the Russian Central Bank is looking to institute a total ban on all crypto activities. A report published by the apex bank titled “Cryptocurrencies: Trends, risks, measures” likens digital currencies to the Ponzi scheme, and calls for the cessation of crypto trading and mining in Russia. Part of the document read:
“Potential financial stability risks associated with cryptocurrencies are much higher for emerging markets, including Russia.”
The report gives two primary reasons why it is necessary to ban crypto in the bi-continental country. The first reason is that digital currencies are highly volatile in nature and can also facilitate illegal activities. In addition to this, the report also stated that crypto could erode the financial sovereignty of a country. This could happen through the repeated outflow of funds through the asset class.
The Russian Central Bank has not particularly taken to crypto. In fact, as recently as December last year, the governing bank was still undecided. It was considering whether to go ahead with the legalization of crypto exchanges in 2022, or proscribe crypto altogether. Now, the decision seems final.
Following China’s sweeping ban on crypto mining activities in May last year, Russia became the third-largest Bitcoin (BTC) mining hub. However, if the proposed ban takes effect in Russia, this could alter the crypto global mining outlook.
Image Credits: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
