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Bank of Russia has tools to restrict crypto investments, Governor’s advice – Regulation – Crypto News

The Russian central bank has reiterated its opposition to investing in cryptocurrencies, citing the volatility of digital assets as the main motive for its conservative stance. Governor Elvira Nabiullina recently hinted that the regulator has the means to curtail them.

Nabiullina insists that the Bank of Russia can limit investments in crypto assets

Russia’s monetary authority does not welcome investments by Russian citizens in cryptocurrencies, the head of the Russian Central Bank (CBR), Elvira Nabiullina, said during an online press conference in this week. She highlighted its volatility and potential use in criminal activity as the main reasons for the regulator’s position.

The governor also noted the Bank of Russia’s stance that Russian financial infrastructure should not be used to facilitate cryptocurrency transactions. She stressed that the regulator is able to implement restrictions and reiterated the bank’s skepticism about these assets. Quoted by the business news portal RBC, the chairman of the Russian central bank said:

Cryptocurrencies pose great risks for retail investors due to their high volatility and use for illegal activities, so we cannot welcome investments in such assets.

Nabiullina’s statements come after media reports revealed that the Russian authorities are currently in talks to choose between two very different approaches to regulating cryptocurrencies and related activities. While Bank of Russia tries to ban crypto purchases, State Duma develops rules for coin mining and exchange. These will legalize cryptocurrencies despite the CBRs opposition in their free circulation, including their use in payment transactions.

Earlier this week, Reuters quoted sources close to the CBR as saying that the monetary authority is negotiating with market participants about a possible ban on the future acquisition of crypto assets by Russian investors. One of them revealed that the central bank’s current position is an “outright rejection” of cryptocurrencies. Industry experts have warned that such a move would drive crypto investors underground and prevent the state from collecting taxes.

However, according to the chairman of the parliamentary financial markets committee, Anatoly Aksakov, lawmakers are also considering legalizing crypto trading, which would allow taxation of the profits and income associated with it. Aksakov noted that the State Duma had already adopted a bill on the taxation of crypto transactions in the Russian Federation at first reading. The law recognizing digital currencies like Bitcoin as taxable property was brought to the House last December.

Do you think the Bank of Russia will convince other authorities to support a cryptocurrency investment ban? Let us know in the comment section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy journalist from Eastern Europe who likes Hitchens’ quote: “Being a writer is what I am and not what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two more Sources of inspiration.

Photo credits: Shutterstock, Pixabay, Wiki Commons

Source: Crypto News Austria

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