The Bank of Russia proposes to introduce a ban on the issuance, mining, and circulation of cryptocurrencies in Russia. This is stated in the report of the regulator “Cryptocurrencies: trends, risks, measures”.
Cryptocurrency mining carries risks for the Russian economy and financial stability, the regulator said.
It is also proposed to establish liability for violation of the legal ban on the use of cryptocurrencies as a means of payment for goods, works, and services sold and bought by legal entities and individuals.
Russia’s Central Bank proposed Thursday to ban cryptocurrency investment and mining as governments around the world crack down on the decentralized currencies, citing threats to monetary stabilityhttps://t.co/sLV92w7AsJ
— The Moscow Times (@MoscowTimes) January 21, 2022
The regulator also considers the introduction of a ban on cryptocurrency mining in Russia.
“Mechanisms should be developed to identify transactions and persons carrying them out after the ban; mechanisms should be developed to block operations aimed at buying or selling cryptocurrencies. An authorized body should be identified, which will be entrusted with the authority to implement measures”, – Central Bank.
The Bank of Russia, as noted in the report, believes that the current scale and further spread of cryptocurrency mining in Russia pose significant risks to the economy and financial stability: they create unproductive energy consumption that threatens the energy supply of residential buildings, social infrastructure buildings, and enterprises, as well as the implementation of the environmental agenda of the Russian Federation; form the demand for infrastructure for conducting transactions with cryptocurrencies, which amplifies the negative effects of the spread of cryptocurrencies and creates incentives for circumventing regulation.
The negative impact of mining on adjacent markets and the environment is noted, as well as the fact that the trend towards an increase in the share of Russia in the total volume of mining can increase the carbon footprint of the country and hinder the achievement of the set goals in the field of sustainable development.
We believe that in view of the significant negative effects that it has on the energy, environmental and industrial sectors, it is advisable to implement a set of measures to limit it,” the report says.
“The Bank of Russia plans to improve the system of regular monitoring of operations with cryptocurrencies, including joint work with financial regulators of countries in which crypto exchanges are registered in order to obtain information about the operations of Russian clients in foreign cryptocurrency markets,” the report says.