According to new reports, the Russian Central Bank wants to ban all crypto activity. The report “Cryptocurrencies Trends, Risks, Measures” published by the Russian Central Bank compares digital currencies to the Ponzi scheme and calls for the cessation crypto trading and mining in Russia. The document also included the following:
“Potential financial stability risk associated with cryptocurrency is much higher for emerging markets including Russia.”
Two main reasons are cited in the report to justify banning crypto currency within the bi-continental nation. First, digital currencies can be highly volatile and facilitate illegal activities. The report stated that crypto could also threaten a country’s financial sovereignty. This could be caused by the outflow of funds via the asset class.
The Russian Central Bank has not taken crypto seriously. As recently as December 2017, the governing bank was still undecided. It was weighing whether to legalize crypto exchanges in 2022 or ban them altogether. The decision is now final.
Russia was the third largest Bitcoin (BTC), mining hub after China’s May 2017 ban. The proposed ban in Russia could change the crypto global mining outlook.
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