Russia’s Central Bank Calls For Total Ban On Crypto

The path ahead for the crypto sector does not appear to be getting easier anytime soon. Following Pakistan central bank’s announcement last week that it was taking measures toward a comprehensive ban on cryptocurrency, Russia’s central bank is now pursuing a total ban on crypto mining and investment.

Russia Central Bank suggested a complete ban on cryptocurrency investment and mining yesterday, joining a growing number of governments around the world that are targeting crypto as a threat to their countries’ monetary stability. Speculative demand is fuelling the rapid expansion of decentralised cryptocurrencies, which could lead to a market bubble. Cryptocurrencies also show characteristics of a financial pyramid, according to the Bank, since an increase in their prices is mostly driven by demand expressed by new market participants.

Russia’s Central Bank stated in its consultation document that it wants to prohibit financial institutions from investing in or conducting any transactions with cryptocurrencies. It also aims to outlaw bitcoin exchanges and any platforms that supports crypto trading. Russian residents’ transactions utilising decentralised cryptocurrencies are estimated to be worth $5 billion each year,

Crypto mining in Russia has a significant presence, as the country ranks third in the world for cryptocurrency mining. The United States continues to have the biggest volume, followed by Kazakhstan, which is in talks to restrict electricity supplies. The announcement of the Russian ban has the potential to send crypto fans all around the world insane.

Minimizing cryptocurrency issuance, as well as OTC trading desks and peer-to-peer exchanges, might cause a ripple in the crypto world. According to the report, the restriction was imposed owing to environmental concerns, as it creates non-productive electrical expenditure, jeopardising the energy supply of residential buildings, social infrastructures, and industrial objects, as well as the Federation’s environmental agenda. The optimal solution, according to the regulator, would be to prohibit cryptocurrency mining in Russia.

The stance, according to miners, was not unexpected. The report reaffirms the bank’s current position, and the final policy will almost certainly include feedback from other parties.

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