Russia’s Central Bank
Russia’s Central Bank

Regardless of Russia recently transferring its first major legislation devoted to cryptocurrencies, the country’s key bank proceeds to treat the industry as a criminal area.

Sergei Shvetsov, the first deputy governor at the lender of The ussr, has voiced the bank’s negative position towards crypto investment. He compared cryptocurrency with financial pyramid schemes and different roulette games games. The established provided his comments on the crypto industry within a Come july 1st 28 live Facebook stream regarding Russia’s new bill on categories of retail investors.

During the live session, Shvetsov emphasized that the Bank of The ussr does not recognize crypto purchases as a possible investment. He said:

“The Bank of Russia, as a regulator, adheres to the position that crypto purchases are not an investment. That is more like monetary pyramid or roulette games, and does not apply to the financial market. Either government or financial intermediaries should never encourage citizens to get cryptocurrencies. ”

“We do not support investment in this criminal sector”

Evaluating cryptocurrencies with “money surrogates, ” Shvetsov argued that no core bank across the world supports such money substitutes. “They are prohibited by the Russian Metabolism and subject to criminal liability, ” Shvetsov continued.

Typically the executive continued that cryptocurrencies like Bitcoin (BTC) are often used for dubious activities like money laundering, and thus really should not be supported by the bank. The required said:

“Cryptocurrencies are also used to circumvent Anti-Money Washing regulations. Consequently , we absolutely do not support citizens’ investment in this felony sector. inches

Major regulation still happening the way

The Lender of Russia’s latest comments come soon after Russian lawmakers passed an important crypto bill, “On Electronic Assets, ” or DFA, on Come july 1st 22. Yet , the DFA bill really does not envision the actual regulation of the industry. Regulatory framework is planned to participate another approaching bill, titled “On Digital Currency. ”

Prohibiting the use of crypto as a payment method, the DFA bill does not provide much information about cryptocurrency investments. At the same time, the Bank of Russia is a key regulator described in the bill record, authorizing the bank to define what sorts of buyers are eligible for investing in this or that crypto product.
Global central banks fighting against crypto

Similarly to other key banks over the world, Russia’s key bank has been desperately confronting legalization of cryptocurrencies like Bitcoin.

In Mar 2020, the financial institution argued that the DFA bill will ban the issuance and circulation of crypto in The ussr. The bill in the end turned out to be less inhospitable to the industry. In February 2020, the financial institution issued a set of regulations for suspicious purchases, categorizing any crypto-related transaction as a potential money laundering chance.

Russia’s key financial institution is not only in its negative position towards crypto. A new number of banks around the world, including India’s RBI have been seeking to ban cryptocurrencies like Bitcoin in order to deal with the new decentralized assets. However, even India’s central bank eventually reversed their decision when the Supreme Court elevated RBI’s ban in March 2020. Additional global authorities who have explicitly banned crypto are the key banks of Myanmar and Zimbabwe.