The issue and circulation of cryptocurrencies will be banned in Russia

On March 16, a Representative of the Bank of Russia, Alexey Guznov, announced a possible ban on the issue and organization of cryptocurrency circulation in the territory of the Russian Federation. As noted in the bill on digital financial assets, the issue and circulation of cryptocurrencies in Russia carry an unjustified risk. The bill prohibits the issue and circulation of cryptocurrency in Russia and introduces responsibility for violating the ban.

Mister Guznov noted: “The position of the Bank of Russia remains unchanged. We believe that there are great risks when legalizing the circulation of cryptocurrencies.” Risks arise for financial stability and the anti-money laundering system, and consumer protection will also suffer.
The Central Bank objected to legalizing cryptocurrency as a “tool” and an object of circulation, said mister Guznov.

Some experts suggested that cryptocurrency should be treated as a foreign currency and its issuance and circulation should be regulated in the same way.

The authorities replied that they did not intend to ban the ownership of the digital currency. The bill only prohibits the issuance and circulation of cryptocurrencies and introduces liability for violation of this ban.

It is absolutely impossible to ban cryptocurrencies and mining, said Yuri Brisov, a member of the Commission for the Legal Support of the Digital Economy. He is sure that such measures will become an obstacle to the development of the blockchain industry in the Russian Federation.

“The ban on mining and cryptocurrencies will lead to the complete decline of the blockchain industry. For this reason, all developed countries, although they understand the risks associated with money laundering, tax evasion, do not ban cryptocurrencies and mining; to ban today means to limit the potential for economic growth and technological development of their country,” said Brisov.

It is important that legal regulation in Russia does not hinder the development of new technologies.
Earlier EhackingNews reported that Russian law enforcement agencies, together with the Ministry of Internal Affairs, to prepare proposals for the arrest of cryptocurrencies by 2021.

Recall that in 2018, President Vladimir Putin said that Russia should “carefully and cautiously” monitor the sphere of cryptocurrencies. At the same time, the position of the Central Bank of Russia was that electronic money can not be a means of payment.