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Today Russia’s Central Bank issued a report on the crypto industry, trends, risks, and regulations. The regulator announced its plans to enhance regulations on unbanked cryptos and stablecoins.
The institution proposes a full crypto ban, including issuance and operations. It also offers to disallow banks from investing in crypto, prohibit exchanging crypto for fiat currency, and introduce legal liability for using crypto as a means of payment.
Russia’s CB indicated the risks it finds digital assets and their fast growth present. According to the institution, cryptos can cause bad impacts for retail investors, threaten fin. stability, and be used for illegal purposes. The regulator finds that the potential cryptos to serve for settlements seems limited in the long run.
The bank mentioned that further rise in value results in demand and expectations, which create a market bubble. Russia's CB compared the crypto space with financial pyramids, saying growth in prices is mostly caused by new participants.
According to the release, crypto presents more risks for Russia and other emerging market economies, due to higher propensity for dollarization and the lack of financial literacy. At a press conference, the Bank of Russia executive Elizaveta Danilova said that Russian residents will still be able to own crypto. However, the CB will monitor crypto activities and receive information.
At the moment, the entire crypto market cap stands at above $2 trillion. The Bitcoin price is around $43.200. In the last 24 hours, the price went up by around 3.%.