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The Russian Central Bank planning to ban Cryptocurrency Investment

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The Russian Central Bank planning to ban Cryptocurrency Investment
20 Dec 2021
5 min read

News Synopsis

Russian Central Bank officials are planning to restrict cryptocurrency investments to mitigate financial stability risks that can happen with the increase in crypto transactions. The Bank of Russia is discussing the matter with experts, looking for a ban on cryptocurrency investment. 

Though it is not confirmed yet if the bank is planning on a complete rejection of all types of cryptocurrencies or the purchase of crypto assets only. The Central Bank First Deputy Governor, Ksenia Yudaeva said that the increasing popularity of cryptocurrencies has raised concerns for financial stability.

Russia has been against the use of cryptocurrencies, claiming that they can be used for money laundering or to finance terrorism. The digital currency was given legal status in 2020 but was soon banned from being a mode of payment. Russia will follow up the actions of China by declaring the use of Cryptocurrency illegal. Beijing declared the use of cryptocurrency illegal in September this year.