The Russian Central Bank to Ban Cryptocurrency Investment

The Russian central bank is reportedly intensifying its anti-crypto campaign, with plans to outlaw all cryptocurrency investments in the country, for the reason that the central bank is concerned over the risks to the country's financial stability with growing cryptocurrency transactions.

According to a recent central bank report, its latest consideration on banning crypto is based on the fact that Russians trade a total of $5 billion worth of cryptocurrencies each year.

Russia has formulated complicated regulations on cryptocurrencies. The country recognized cryptocurrencies as property last year but banned using them as a means of payment. In addition, the Russian legislators put forward many other draft legislations relating to cryptocurrencies, concerning their taxation, holding, and several other areas but only a few of them have become law.

According to one of the anonymous sources close to the regulator, the central bank has already begun talks with local cryptocurrency market participants and specialists in order to implement the ban, but lawmakers have yet to approve it. If passed, the bill will prohibit new purchases of digital currencies in Russia, although it will have no effect on Russians' existing bitcoin holdings. Meanwhile, another source verified that the Russian regulator wants all cryptocurrencies to be "completely rejected."

​Moreover, before Russia considers such harsh anti-crypto legislation, India has taken the initiative and is preparing to put forward a bill it has formulated prohibiting the circulation of cryptocurrencies in the country during the current parliamentary session. Both of these countries are following China's lead in banning cryptocurrencies and pushing for a central bank digital currency (CBDC).