Bank of Russia proposes a total crypto ban

TL;DR Breakdown:

• The Bank of Russia has suggested a complete ban on crypto. 
• The proposal wants to ban crypto mining, trading, and usage in the country. 
• However, owning cryptocurrencies would still be legal. 
• The institute claims that crypto is a risk to Russia’s national economy. 

The central bank of Russia has proposed a complete bank on cryptocurrencies in the country. The proposal was presented during an online conference by the Director of the Bank of Russia. A full justification behind the request was also published in a cryptocurrency consultation report by the institute. 

The report emphasizes that crypto is extremely volatile and has helped to spread fraudulent activities in the country. It also says that cryptocurrency is a potential risk to the country’s national economy. Director Elizaveta Danilova said that a complete ban would mean no mining, trading, or usage of crypto in the country. However, owning cryptocurrencies would still be legal. 

The report also suggested that the government should introduce punishments for individuals who buy or sell products/services using crypto. This isn’t the first time the Bank of Russia has gone after crypto. Previously, the bank had banned mutual funds from investing in any cryptocurrencies. 

Is Russia trying to follow China? 

Russia has always taken a negative stance against crypto. In 2019, the country’s government institutes balmed cryptocurrencies for spreading money launching and terror financing. However, the government legalized crypto in 2020, although banning their use as payments. 

Crypto mining has significantly increased in Russia after China’s ban. However, it looks like the country is trying to shadow China’s approach. However, Danilova said during that press conference that there are still no places to implement a similar ban to China. 

It’s important to remember that China’s ban was much harsher. The country didn’t just ban crypto mining and trade, but it also banned any investments into blockchain-related stocks. 

Although the Bank of Russia’s proposal can cause significant worry for its crypto traders and miners, it’s still not confirmed if the government will follow through with a total ban. 

A similar proposal was submitted by the Reserve Bank of India in December, suggesting a complete ban of crypto in the country. However, the government hasn’t made any steps or decisions towards such plans.