Russia’s central bank suggests making crypto trading, mining, and usage illegal. Owning crypto would be allowed.
Report Details
- Cryptocurrencies are volatile and widely used in illegal activities such as fraud.
- By offering an outlet for people to take their money out of the national economy, they risk undermining the regulator’s job of maintaining optimal monetary policies.
- The bank needs new laws and regulations to effectively ban crypto-related activities.
- Issuance and trading using the country’s financial infrastructure should be stopped.
- Existing ban on using crypto for payments should be reinforced.
- No Russian financial organizations or infrastructure should be used for cryptocurrency transactions.
- Cryptocurrency mining creates a fresh supply of cryptocurrencies, stimulating demand for other crypto services and undermining energy supply.
- The optimal solution is to ban crypto mining in Russia.
- The probability of a complete ban of the entire cryptocurrency industry is “negligible.”
Key Findings
- Russians conduct over $5 billion worth of crypto transactions in a year.
- The existing ban on using crypto for payments should be reinforced.
- No Russian financial organizations or infrastructure should be used for cryptocurrency transactions.