Full Cryptocurrency Transactions Ban Planned in Russia

e_abrams

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Dec 11, 2020
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Official reports came this week that Russia is planning to execute a full-action ban of all cryptocurrency investments in the country. The country’s anti-crypto stance has been obvious in the last couple of years, and this move is not considered a surprise.

Reuters was first on the news, citing two anonymous sources that have a connection to the nation’s financial regulator. The media outlet added that concerns over Russia’s financial stability during times of increased crypto transactions are the main agitators of the ban.

For quite some time now, Russian crypto regulations have been a very complicated enterprise. Last year the nation banned digital coins as payment methods, yet officials recognized these to be property. Further concern was raised by legislators as to the taxations and holding of crypto assets, and as a result, a number of draft legislations were created, yet only a handful of them were officially approved to become laws.

Russia’s central bank already started communicating with crypto exchanges and other crypto-related market participants concerning the ban. The only this now that is expected is to legitimize the ban. However, one of the anonymous sources added that, if approved, the law will not be able to tinker with existing crypto holdings.

A report made by the central bank revealed that the total value of traded cryptocurrencies in Russia amounts to more than $5 billion per year. Some critics are claiming that these figures are behind the latest ban considerations by authorities, as there is a potential of total market destabilization.
Source
Russia's crypto legislation has been about as messy and contradictory as India's, so we will have to wait and see whether this ban will actually materialize.