TIMES.KY

Cayman Islands, Caribbeanand International News
Tuesday, Mar 21, 2023

Russian Central Bank set to prohibit all cryptocurrencies

Russian Central Bank set to prohibit all cryptocurrencies

Russian Central Bank set to prohibit all cryptocurrencies such as Bitcoin in the country, including transactions, mining, and circulation.
Russia’s central bank proposed a blanket ban on the use and creation of all cryptocurrencies within one of the world’s biggest crypto-mining nations, citing the dangers posed to the country’s financial system and environment.

Crypto bears the hallmarks of a pyramid scheme and undermines the sovereignty of monetary policy, the central bank said in a report Thursday. It also took aim at mining, which it said hurts the country’s green agenda, jeopardizes Russia’s energy supply and amplifies the negative effects of the spread of cryptocurrencies, creating incentives for circumventing attempts at regulation.

“Potential financial stability risks associated with cryptocurrencies are much higher for emerging markets, including in Russia,” the central bank said.

Russia already bans the use of crypto to make payments and the central bank in December prohibited mutual funds from investing in it. Thursday’s report called for individuals and businesses that flaunt the rules to be held to account, citing estimates that put Russian’s crypto trading turnover at about $5 billion a year.

Proposals would not apply to assets held abroad by Russians, Elizaveta Danilova, the central bank’s financial stability department head, said at an online briefing Thursday, adding that people with offshore exchange accounts will be able to trade crypto. While any ban would first need to be passed into law before taking effect, speaker of the lower house of parliament Vyacheslav Volodin said this week that creating a regulatory framework will be a priority in the State Duma’s spring session.

Russia is home to a thriving mining industry, which has become an increasingly important center after China labeled crypto-related transactions illicit financial activity and vowed to root out mining of digital assets. Crypto mining is energy-intensive, requiring a large degree of computing power.

Russia became the world’s third biggest crypto miner last year, after the U.S. and Kazakhstan, according to Cambridge University data released in October. The largest facilities are located in the country’s north and in Siberia, where the temperatures are low and there is access to cheap power. BitRiver, Minespot and BitCluster are among the biggest companies that provide services in the industry.

“We hope that this proposal will be discussed with the industry,” co-founder of BitCluster Vitaliy Borschenko said by phone. “The central bank’s main concern is that cryptocurrency won’t be traded in Russia and crypto mining poses no risks in this regard.”

The central bank’s position on mining could face some resistance among lawmakers. Russia should regulate and tax mining, but it shouldn’t be banned given the country’s competitive advantages, Vladimir Gutenev, the head of the Duma’s industry committee and a member of the ruling United Russia party, told Interfax news agency. Meanwhile, neighbor Kazakhstan — which also saw an influx of crypto mining after China’s ban, has been roiled by political unrest and an energy squeeze — making it an unlikely spot for Russian miners who might seek a new home.

The news drew little reaction in the crypto market, with Bitcoin climbing as much as 4.2%, in step with a rise in tech shares.

“Bitcoin mining is certainly growing faster than whatever it is losing in these announcements. A good way to say it is the currency is more mature at this point,” David Tawil, president of ProChain Capital, said by phone. “Today, we’ve progressed far beyond this.”


Separate Push

The central bank’s hard line against crypto dovetails with the position of Russia’s powerful security services, which also back a compete ban domestically to prevent it from being used to fund the country’s opposition, according to two people familiar with the issue. More than 7 trillion rubles ($92 billion) of assets are held in about 17 million cryptowallets in Russia, they said.

The Federal Security Service, or FSB, lobbied Governor Elvira Nabiullina for a blanket ban as the hard-to-trace payments are increasingly used by Russians to donate to undesirable organizations, including media resources that have been labeled “foreign agents,” said the people, who asked not to be identified because the information is not public.

Opposition and media funding accounts for an insignificant fraction of crypto use in Russia but the security services are worried that it is a growing problem, they said.

A spokesperson for the FSB didn’t respond to requests for comment.

“As for the FSB, the Bank of Russia has been saying for a long time that we consider the risks of cryptocurrencies to be high,” Danilova of the central bank said Thursday. “This is our position. But at the same time, we are pleased if other organs share it.”
Newsletter

Related Articles

TIMES.KY
Close
0:00
0:00
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
If this was in Tehran, Moscow or Hong Kong
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Mexican President Claims Mexico is Safer than the U.S.
A brief banking situation report
Lady bites police officer and gets instantly reaction
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Silicon Valley Bank exec was Lehman Brothers CFO
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Banking regulators close SVB, the largest bank failure since the financial crisis
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
Don Lemon, a CNN anchor, has provided a list of five areas that he believes the black community needs to address.
Hello. Here is our news digest from London.
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
Givenchy Store in New York Robbed of $50,000 in Merchandise
European MP Clare Daly condemns US attack on Nord Stream
Former U.S. President Carter will spend his remaining time at home and receive hospice care instead of medication
Tucker Carlson called Trump a 'demonic force'
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
White House: No ETs over the United States
U.S. Jet Shoots Down Flying Object Over Canada
Being a Tiktoker might be expensive…
SpaceX, the private space exploration company, made a significant breakthrough in their mission to reach space.
China's top tech firms, including Alibaba, Tencent, Baidu, NetEase, and JD.com, are developing their own versions of Open AI's AI-powered chatbot, ChatGPT
This shocking picture, showing how terrible is the results of the earthquake in Turkey
President Joe Biden delivered the 2023 State of the Union Address , in order to help Americans that missed the 2022 speech, do not have internet, and suffer from short memory.
The desk of King Carlos Alberto of Sardinia has many secret compartments
Today's news from Britain - 9th February 2023
The five largest oil companies in the West generated combined profits of nearly $200 billion in 2022, which has led to increased calls for governments to impose tougher windfall taxes
2 earthquakes in Turkey killed over 2,300 people
Powerful Earthquake Strikes Turkey and Syria, Killing More Than 1,300 People.
×