Thursday, May 26

Russia studies banning investment in cryptocurrencies

  • Sources close to the Russian Central Bank tell Reuters that a “complete rejection” of the transaction of increasingly popular digital assets such as Bitcoin or Ethereum is being prepared

The central bank from Russia wants to prohibit investment in cryptocurrencies, as it considers that they pose a risk to the financial stability from the country. The national monetary body would be talking with market agents to decide how the restriction of these digital assets will be, sources close to the case have assured Reuters.

There are still few details on how it will proceed. Moscow. While the Bank has limited itself to explaining that it is preparing a report on the subject, the experts consulted by the agency point out that the agency’s position is one of ‚Äúcomplete rejection & rdquor; to all the cryptocurrencies and they point out that this prohibition could apply to the future sale of assets, but not to transactions that have already been carried out.

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At the beginning of December, the first vice-governor of the entity, Ksenia Yudaeva, was skeptical of the popularity of cryptocurrencies such as Bitcoin The Ethereum and its possible use to launder money or finance terrorism, a concern that Moscow has repeated for months. In July 2020, the country recognized the legal status of these assets but prohibited their use as a means of payment for goods and services.

Choosing to completely prohibit investment with all kinds of virtual currencies, Russia would follow in the footsteps of China, which on September 24 declared them illegal. At the time, the People’s Bank of China, its central body, also argued “serious dangers to the safety of people’s assets & rdquor; and its possible use for “illegal financial activities”. The decision dealt a severe blow to the crypto ecosystem and sent the value of Bitcoin plummeting.

Reference-www.elperiodico.com

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