Bank of Russia confirms its anti-crypto stance

The Central Bank of Russia (CBR) has again taken an antagonistic stance against crypto, citing crypto’s inherent volatility and illegal use as a key reason for their conservative position. Sources said the CBR’s current stance on cryptocurrency is one of “complete rejection.”

CBR Governor, Elvira Nabiullina, said during Friday’s online press conference that the Bank of Russia’s stance is that the Russian financial infrastructure should not be employed to facilitate cryptocurrency transactions.

“Cryptocurrencies carry great risks for retail investors due to high volatility and use in illegal activities, so we cannot welcome investments in such assets,” the chair of the Russian central bank stated, according to the business news portal RBC.

She also stressed that the regulator is capable of implementing restrictions and reiterated the bank’s skepticism towards these assets.

This statement by the CBR Governor is not the only mark that the Russian central bank lately continues its strict policies regarding the crypto industry. On December 13, the Bank of Russia published an official statement regulating investment opportunities by mutual investment funds.

Despite expanding the number of assets available for investment by mutual funds, the document prohibits fund managers from buying cryptocurrencies as well as “financial instruments whose value depends on prices of digital assets.” The statement emphasizes that mutual funds are not allowed to provide crypto exposure both to either qualified or unqualified investors.

Nabiullina’s comments follow media reports revealed that Russian authorities are now holding discussions to choose between two very different approaches to the regulation of cryptocurrencies and related activities. While the Bank of Russia seeks to prohibit crypto purchases, the State Duma is developing rules for coin mining and exchange. These will legalize cryptocurrencies despite the CBR’s opposition to their free circulation, including their use in payments.

Last week, Reuters quoted sources close to the CBR who indicated that the monetary authority is in talks with market players over a possible ban on the acquisition of crypto assets by Russian investors in the future. One of them unveiled that the central bank’s current position is one of “complete rejection” of cryptocurrencies. Industry experts have warned that such a move would push crypto investors underground and prevent the state from collecting taxes.

One source close to the RCB said the central bank’s current position on cryptocurrency is one of “complete rejection.”

However, industry experts have warned that banning crypto would push investors underground, which would prevent the state from collecting taxes.

Meanwhile, Russian crypto miners seem to be looking to increase computing power, despite the upcoming crypto ban narrative. The market for crypto mining equipment in Russia has seen strong interest from buyers of both new and used devices, retail data indicates. This year, demand for application-specific integrated circuit (ASIC) machines has multiplied exponentially while video cards have been in short supply leading to rising prices.