According to Reuters news source, two financial market sources close to the Central Bank of Russia said that the central bank wants to ban cryptocurrency investments in Russia. The reason for the ban was that the increase in crypto currency transactions carries a risk to financial stability.
Russia has already been against cryptocurrencies for years, saying they could be used to launder money or finance terrorism. It finally gave digital assets legal status in 2020, but prohibited them from being used as a means of payment.
One of the financial market sources said that the central bank is currently in discussions with market players and experts about the possible ban, which, if approved, would apply to purchases of new cryptoassets, but not to those bought in the past.
Another source close to the Central Bank of Russia said that the current position of the central bank is a “total rejection” of all cryptocurrencies.
In response to Reuters’ request, the central bank announced that it was preparing an advisory report to articulate its stance on the matter.
As we previously reported, Russian President Vladimir Putin warned against cryptocurrencies in early December, drawing attention to the “high risks” he believes virtual assets bring with them. However, the Russian leader also acknowledged at the time that digital currencies could have a future and that it was necessary to follow their development.