After the Central Bank of Russia banned mutual funds from investing in Bitcoin and other cryptocurrencies in early December, Russia is now allegedly going to ban investing in cryptocurrencies.
According to Reuters, information from sources close to the central bank says that the Russian central bank wants to ban cryptocurrency investments due to the risks to financial stability in increasing cryptocurrency transactions.
A source close to the Central Bank of Russia stated that the intention of the central bank is to completely ban cryptocurrencies.
According to Reuters, the crypto investment ban will prohibit investors from buying new cryptocurrencies and will not cover existing crypto assets.
Russia has previously banned the use of cryptocurrencies as a means of payment against the risk of being used as money laundering and terrorist financing.
Oliver Hughes, CEO of Tinkoff, one of the leading banks in Russia due to the Central Bank’s stance against cryptocurrencies, told CNBC, “Due to the Central Bank of Russia’s crypto policy, we will not be able to offer crypto trading to our customers.” he said.
Reuters requested comment from the Central Bank of Russia on the matter, but did not comment on the details, saying that the central bank has prepared an advisory report stating its stance on the issue.
Russia is working in the field of central bank digital currency in order to modernize the financial system and accelerate payments against the financial risks arising from cryptocurrencies. In this context, Russia is expected to start digital ruble trials next year.