The Central Bank proposes a ban on operations with cryptocurrency in Russia

The Central Bank proposes a ban on operations with cryptocurrency in Russia. The main risks of the spread of cryptocurrency. Fighting tools.

The Central Bank published a report on cryptocurrencies on its official website, in which it outlined their danger to depositors and the state, on the basis of which it proposed a complete ban on transactions with all cryptocurrencies on the territory of the Russian Federation. At the same time, the regulator referred to international experience (the experience of developed countries) and the risks of using and acquiring cryptocurrencies that it identified.

Now cryptocurrency in Russia is partially legalized under federal law, transactions with it are allowed, but there is a ban on its use as a means of payment within the Russian Federation. In this regard, the Central Bank of the Russian Federation noted that Russian citizens and organizations actively use cryptocurrency and in terms of the volume of operations and deposits, Russia occupies one of the leading places in the world, including in terms of population and size of the economy. And its popularity is constantly growing, only the volume of operations of Russian citizens with cryptocurrency is approximately estimated at 5 billion dollars a year, and companies are willing to open accounts in it if possible.

The Central Bank revealed in detail the main risks of the spread of cryptocurrency:

a threat to the well-being of citizens is a risky investment that depends on unregulated factors, crypto exchanges do not provide adequate protection, and their legal regulation is limited;
a threat to the state - undermines financial stability, contributes to the depreciation of the ruble and the outflow of capital from the country;
the threat of being used to finance crime - transactions are anonymous, which allows you to launder income and hide their sources and the ultimate beneficiary.
Crypto exchanges create a global world system that is still poorly regulated, does not depend on traditional financial factors and does not lend itself to the usual tools of control. In this connection, it is a systemic threat, according to the Central Bank of the Russian Federation.

What does the Central Bank offer in this regard at the state level:

prohibit by law the issuance and all possible operations with crypto-currencies: their circulation and exchange;
prohibit the use of Russian financial intermediaries and financial market infrastructure for any cryptocurrency transactions;
prohibit Russian financial institutions from own investments in cryptocurrencies and related instruments;
introduce liability (not yet specified what) for violation of these rules;
develop an agreed unified position in the international community and within the EAEU so that cryptocurrency transactions do not flow into jurisdictions with a more loyal regime (Kazakhstan and Belarus do not prohibit cryptocurrency transactions).
Thus, it is proposed to prohibit all operations of individuals and legal entities in the territory of the Russian Federation with cryptocurrency under the threat of liability, until it is indicated what kind of liability it will be.

One of the tools of the struggle will most likely be blocking card transfers according to certain codes that the bank assigns to the recipient of the payment, crypto exchangers and crypto exchanges are assigned a separate code.

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