- Bank of Russia has released a report that proposes a complete ban on all crypto activities.
- The ban will ensure that correct monetary policies for the Russian economy are made.
- Anyone or businesses that break the rule will be punished.
Russia has joined the league of countries that have proposed a total ban on all cryptocurrency-related activities. In a press conference report on Thursday, the Director of the Bank of Russia’s Financial Stability Department Elizaveta Danilova made this known.
Elizaveta noted that monetary policymakers are finding it difficult to make policies that will regulate financial activities in the country since cryptocurrency transactions create an outlet to remove money from their national economy. The report added that cryptocurrency transactions are prone to fraud and high risk due to the volatility of crypto-related assets.
The bank suggested that there should be new legislation and policies that will ensure that all forms of trading through cryptocurrencies exchanges in the country and peer-to-peer platforms are completely banned. To ban will be extended to organizations that enhance the creation, and promotion of crypto-assets.
The report noted that adequate punishment should be given to any individuals who fail to adhere to the rule by reinforcing the earlier policy on the crypto ban. Businesses are also prohibited from accepting cryptocurrencies for their services. Institutional investors were not spared by the new rule since Russian banks had been forbidden from helping them carry out crypto transactions to avoid sanctions.
The report added that cryptocurrencies mining activities are prohibited in the Russian Federation since it leads to high energy consumption which affects other areas of their use, therefore, undermining the nation’s economy.
To ensure full compliance with the ban, the bank will be collaborating with other banks from different countries to receive data of Russian residents that did not adhere to the ban for prosecution.
The bank noted that Russian Federation would create a Central Bank Digital Currency (CBDC) in the future to meet the yearning of Russians that wish to trade on digital assets excluding cryptocurrencies.
No information was given in the report on how the earlier statistics that more than $5 billion worth of cryptocurrencies transactions are carried out by Russians in a year.