Russia must ban cryptocurrencies, the country’s central bank said in a report released Thursday.
The report says cryptocurrencies are volatile and widely used in illegal activities such as fraud. By offering an outlet for people to take their money out of the national economy, they risk undermining it and making the regulator’s job of maintaining optimal monetary policies harder, the report said.
The bank, therefore, said Russia needs new laws and regulations to effectively ban crypto-related activities. The bank is not suggesting banning ownership of crypto by private citizens, Danilova said.
Issuance and trading using the country’s financial infrastructure, which could pose a risk to Russia’s financial stability, however, should be stopped. The bank said in November that Russians conduct over $5 billion worth of crypto transactions in a year, and that level did not pose a risk. An existing ban on using crypto for payments should be reinforced, and punishment should be introduced for buying or selling goods, services and labor by Russian individuals and businesses, the report suggests.