Russia abandons crypto ban, wants to regulate digital assets instead

TASS news agency reported that the Bank of Russia aims to introduce legislation to regulate the circulation of cryptocurrency in the country instead of banning it.

According to local reporters, the Deputy Chairman of the Central Bank, Vladimir Chistyukhin, hinted that privately operated digital assets might soon be phased out of the country’s financial systems.

More so, the regulator also addressed the question of whether the Central Bank supports the banning of financial transfers from citizens’ bank accounts in Russia to cryptocurrency. He said,

“I think we will solve the issue through changes in legislation. There will be a more accurate definition of how cryptocurrencies can apply.”

In addition, Chistyukhin stressed that Russian citizens and businesses may buy cryptocurrency, but not through domestic infrastructure or intermediaries.

Adding to this, he highlighted that the Bank of Russia is working on a paper that will express its vision for the role of cryptocurrencies in the Russian financial sector.

"I think we will publish a report on cryptocurrencies in the near future. This report will contain our approaches to the place for cryptocurrency we see in the Russian financial market. I give a hint – we do not see a place for cryptocurrency in the Russian financial market."

Indeed, according to two financial market sources close to the Russian central bank, the increasing volume of cryptocurrency transactions poses a threat to financial stability, prompting the bank to consider a ban on cryptocurrency investments in the country.