Russia’s Central Bank Proposes Ban on the Use, Trading, and Mining of Cryptocurrencies -Breaking
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Russia’s Central Bank Proposes Ban on the Use, Trading, and Mining of CryptocurrenciesDifferent frameworks have been adopted by countries all over the world to manage the rapidly-expanding crypto sector. As digital assets dominate and proliferate, there are many ways for governments around the world to do so.
Russia is expected to follow the lead of Mexico, China and Spain which have all banned digital assets.
Central Bank of Russia Proposes Crypto Ban
A blanket ban was proposed by Russia’s central bank on Thursday, 20 January, regarding the mining, trading, or use of any cryptocurrency within Russia.
Russia’s apex bank cites the dangers posed to the country’s financial system and environment as the reason for the move to ban cryptocurrencies and related activities.
According to its Thursday report, cryptocurrencies bear the hallmarks of a pyramid scheme, and undermine the sovereignty of the nation’s monetary policy.
It outlawed cryptocurrency payments from within the country’s borders in December. With a turnover of approximately $5 billion per year, the central bank now seems poised for crypto to be effectively banned in the country. A portion from Thursday’s report can be viewed here:
“Potential financial stability risks associated with cryptocurrencies are much higher for emerging markets, including in Russia.”
Concerning the topic of crypto mining, the central bank explained that it directly impacts the nation’s green agenda. Moreover, according to the apex bank, the process of mining cryptocurrency jeopardizes Russia’s energy supply.
If the law passes, cryptocurrencies would effectively be outlawed by one of the world’s biggest crypto-mining nations, marking a repeat of China’s own ban, and the ensuing Great Mining Migration.
Flipside
- Russia boasts a flourishing mining industry. Representatives of the cryptocurrency industry are expected to discuss the idea.
What You Need to Care About
As the crypto industry matures, there have been calls for global regulation to ensure the industry’s sustainability.
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