Russia’s Central Bank has no plans yet to impose a ban on cryptocurrencies

The regulator’s representative commented on previous publications in the media

20.01.2022 - 14:40

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What’s new? The Central Bank of Russia has no plans to impose a ban on ownership of cryptocurrencies for citizens, said Elizaveta Danilova, Director of the regulator’s Financial Stability Department. This is how she commented on media publications that the Bank of Russia had put forward such an initiative in its report. Previously, Bloomberg, citing anonymous sources, reported that the Federal Security Service (FSB) convinced the regulator to support the ban.

Material on RBC with reference to Danilova’s statement

How did events develop? On the morning of Thursday, January 20, Bloomberg published an article citing the agency’s own sources that the FSB convinced Central Bank Chairman Elvira Nabiullina to support the ban on cryptocurrency transactions in Russia. According to the agency’s interlocutors, in this way, the authorities allegedly planned to deny the opposition and foreign media access to funding.

Later today, the financial regulator published a report “Cryptocurrency Risks and Possible Regulatory Measures.” It noted that the Central Bank has already proposed to impose the ban on the issuance, circulation, and exchange of cryptocurrencies, as well as the organization of such operations in Russia. The document remarked that the rising price of cryptocurrencies determines hype and speculative demand, which leads to the formation of a bubble. In addition, they have the characteristics of financial pyramids.

What did the Central Bank’s representative say? In the end, Elizaveta Danilova parried that the Bank of Russia has no plans yet to ban the ownership of cryptocurrency.

“It is possible to do this in foreign jurisdictions, although we still draw attention to the fact that cryptocurrencies carry significant risks. These risks are also associated with the acquisition of cryptocurrencies in foreign jurisdictions, on foreign crypto exchanges,” she clarified.

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