Russia’s Central bank calls for crypto crack down
- ByStartupStory | January 21, 2022
The latest move in a global cryptocurrency crackdown as government from Asia to the United States fret that privately operated and highly capricious digital currencies could undermine their control of financial and monetary systems.
MOSCOW : Russia’s central bank on Thursday nominated censure the utilisation and mining of cryptocurrencies on Russian territory, citing threats to financial stability, citizens’ welfare and its monetary policy sovereignty.
The move is recent in a global cryptocurrency crackdown as government from Asia to the United States fret that privately operated and highly flickery digital currencies could undermine their control of financial and monetary systems.
Russia has quibbled for years against cryptocurrencies, stating they could be utilised in money laundering or to finance terrorism.
It eventually gave them legal status in 2020 but censured their use as a means of payment.
In a report published on Thursday, the central bank said suppositional demand primarily determined cryptocurrencies’ rapid growth and that they carried characteristics of a financial pyramid, warning of potential bubbles in the market, threatening financial stability and citizens.
The bank proposed obviating financial institutions from carrying out any operations with cryptocurrencies and said mechanisms should be developed to block transactions aimed at buying or selling cryptocurrencies for Fiat currencies.
Restrictions on owning cryptocurrency are not envisaged, said Elizaveta Danilova, head of the central bank’s financial stability department.
The central bank highlighted that it would work with regulators in countries where crypto exchanges are registered to accumulate information about the operations of Russian clients.
It pointed to steps taken in other countries. Such as China, to curb cryptocurrency activity.
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