Bank of Russia to ban cryptocurrency issuance in the country

According to Guznov, the upcoming digital financial assets bill will illegalize the trading, circulation and issuance of digital currencies in the country. He said that the Bank of Russia does not think the trading and issuing of digital currencies should be legal.

Nevertheless, the digital financial assets bill passed back in 2018 legalized the trading of digital assets in the country. Guznov now reveals trading will not be allowed after the latest amendment. According to him, the new bill will criminalize everything about digital currencies unless holding.

Moreover, Guznov says that the central bank has made a consensus with market players; and other state agencies that allow the holding of cryptocurrencies. However, he insists that the trading and issuing of digital currencies hold risks. The upcoming bill pronounces the penalties of infringing the new laws. Guznov says:

“In terms of the functioning of the financial system and consumer protection system, legalization of the issuance and facilitating the circulation of cryptocurrencies is an unjustified risk. As such, the bill explicitly prohibits emission and organization of cryptocurrency circulation, introducing legal liability for violating these rules.” 

Cryptocurrency regulation in Russia confusing 

The recent updates on the regulatory framework of the digital currencies space; comes after a lengthy period of uncertainty and delays in giving regulatory clarity. Back in 2019, Russia’s President Vladimir Putin called for a more regulated approach by adopting the 2018 digital financial assets bill. However, to date, the bill is yet to take shape.

In conclusion, the country’s finance ministry has been battling to legalize digital currencies in the country. On the other hand, the Bank of Russia has been fighting to outlaw the use of cryptocurrencies in the country. 

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