The head of the Russian Central Bank once again voiced the regulator’s skepticism towards cryptocurrencies due to their high volatility. Earlier, the State Duma confirmed that they are discussing a complete ban on investing in bitcoin.
The Russian Central Bank opposes the presence of cryptocurrencies in the Russian financial system.
“Cryptocurrencies carry great risks for retail investors due to high volatility and use in illegal activities, so we cannot welcome investments in such assets,” said Elvira Nabiullina.
Nabiullina added that the regulator has tools to prevent investment in cryptocurrencies.
Earlier, Reuters, citing its own sources, said that the Bank of Russia insists on banning investments in cryptocurrencies in the country, as they carry risks to financial stability. Later, the chairman of the State Duma committee on the financial market, Anatoly Aksakov, confirmed that such a ban was being discussed. But he added that the authorities are discussing a wide range of approaches to the regulation of cryptocurrencies, from a complete ban to the legalization of crypto exchanges and crypto mining.
“All the discussions related to how to determine the appropriate new instruments and how to tax them must be completed in the spring session of the State Duma, so that we can enter the next tax period, i.e. 2023, with full understanding of how all this should be regulated “.
However, the legalization of mining can turn into a nightmare for mining farms operating in Russia. State Duma Deputy Andrey Lugovoy vows for increased electricity tariffs for bitcoin miners and called the mining industry a socially insignificant production. Lugovoy suggested that miners who would not go through the registration procedure should be imprisoned.
Earlier, the Central Bank estimated the annual volume of transactions of Russians with digital assets at $5 billion.