Russia could join China in cracking down on the cryptocurrency industry

According to a Reuters report that cites sources familiar with the matter, Russia continues its controversial approach to cryptocurrencies as the central bank now aims to ban such investments.

Russia mulls crypto ban

The central bank of Russia has now decided to take a very adverse approach to the crypto industry. Accordingly, investors will be barred from making new purchases, but the ban will not extend to existing crypto holdings. Earlier this month, the Central Bank of Russia banned mutual funds from investing in Bitcoin and other cryptocurrencies.

In July, the central bank asked stock exchanges to restrict foreign and domestic crypto-oriented companies’ listing due to high volatility, insufficient liquidity, and regulatory risks. In July 2020, Russian lawmakers banned the use of cryptocurrencies as a means of payment and outlined the legal status of the new asset class.

Like previous times when the organization spoke out against the crypto industry, it outlined the alleged use of assets in malicious activities. Two sources familiar with the matter explained that the bank had opened talks with market players and experts on how to implement the ban.

If successful, the country will ban investors from operating with digital assets from this point forward, while previous investments will not be affected. For years, the world’s largest country by land area has had controversial and inconsistent views on crypto space.

It had come up with the idea of ​​a ban before but never implemented it. The country’s deputy finance minister – Alexey Moiseev – recently reassured that the country has no intention of going the way of China and placing a complete ban on all things cryptocurrencies. Some local banks, such as Neobank, have been quite open to the idea of ​​adding crypto services. However, others want more clarity on regulations before going that route.

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