The Central Bank of Russia has always been suspicious of cryptocurrencies, but now this distrust has resulted in a substantive and very detailed report entitled “Cryptocurrency Risks and Possible Regulatory Measures: Report for Public Consultations”. All the most interesting is contained on the 34th page of this report. In paragraph 4.2, the Bank of Russia actually formally formulates its position on cryptocurrencies. In short, the regulator proposes to completely ban cryptocurrencies, investments in them and mining. We are talking essentially about a total ban according to the Chinese scenario, only in China it was carried out in stages, and in Russia everything can happen at once.
Here is an excerpt from the most interesting part of the report:
In our opinion, additional measures are appropriate:
1. Introduction of liability for violation of the ban on the use of cryptocurrency as a means of payment for goods, works and services sold and bought by legal entities and individuals - residents of the Russian Federation.
2. Introduction of a ban on organizing the issuance and (or) issuance, organization of circulation and exchange of cryptocurrencies (including crypto exchanges, crypto exchangers, P2P platforms) on the territory of the Russian Federation and establishing liability for violation of this ban. Mechanisms should be developed to identify transactions and persons carrying them out after the introduction of the ban; mechanisms have been developed for blocking operations aimed at buying or selling cryptocurrency for fiat currency. An authorized body (bodies) should be identified, which will be entrusted with the authority to implement the measures.
3. Introduction at the legislative level of a ban for financial organizations on their own investments in cryptocurrencies and related financial instruments, a ban on the use of Russian financial intermediaries and financial market infrastructure to carry out any operations with cryptocurrencies (acquisition, making payments and transfers, alienation of cryptocurrencies) and to facilitate the implementation of such transactions (including the provision of custody services or the promotion of risk-taking through derivatives).
The Bank of Russia also considers it necessary to develop an agreed position regarding the regulation of cryptocurrencies with partners in the EAEU, since this structure includes Kazakhstan and Belarus, which "are also active participants in the global crypto-currency market."
As of August 2021, Russia was the third largest Bitcoin miner in the world, providing about 11% of the global hash rate. The ban on mining in the country can cause a significant blow to the network capacity.
Perhaps the position of the Bank of Russia regarding the regulation of cryptocurrencies would not have been so harsh if it were not for the influence of the Federal Security Service. According to Lenta.ru, citing a Bloomberg report, the FSB persuaded Elvira Nabiullina, Chairman of the Central Bank, to support a complete ban on cryptocurrencies in Russia. The FSB is concerned that opposition organizations are financed with the help of cryptocurrencies and that the influence of this method of financing will increase.
bbabo.Net