Home Cryptocurrency Crypto firms are banned in Russia, clarifies Russian central bank

Crypto firms are banned in Russia, clarifies Russian central bank

by Serge Shlykov

In an official statement issued on Friday, the Russian central bank (the Bank of Russia) has declared all ICOs and cryptocurrencies illegal. The reason given is that ICOs are merely a form of money laundering, and are not legal tender. The statement also claims that cryptocurrencies can be used to fund terrorism, and that they do not provide positive effects to consumers.

Russian Central Bank (Bank of Russia) issued a warning to the population about the risks of digital currency for the population. Today, the central bank released a statement clarifying that they are banning the issuance of virtual currency. The central bank also believes that the market for virtual currency is too small to be a threat to the stability of the Russian economy.

In October, regulators in Russia banned six cryptocurrency companies, citing the “threat posed to the financial and investor security” by their activity. The Russian Central Bank also announced its intention to regulate crypto exchanges in January, saying their work “may threaten the financial stability of the country”.

TL;DR Summary

• The Central Bank will continue to accept centralized virtual currencies, and trusts and brokers will not be able to collaborate with crypto businesses.

Russia’s banks have sent a warning to the country’s securities authorities. This statement implies that no broker should be associated with any cryptocurrency businesses.

The petition was signed by the BCR vice-president, who requested that the brokers refrain from using cryptocurrency. This regulation has been extended to both domestic and international crypto businesses in Russia. Everything points to Russian rules, with the Central Bank attempting to impose cryptocurrency limitations.

Crypto-firm announcements from central banks

All crypto businesses are banned, according to Sergei Shvetsov, deputy president of the Russian Central Bank. This applies to businesses using cryptocurrency for payments or speculating on the token. Even with the limitations, he refuses to view a list of crypto derivatives or crypto fund values.

Trust brokers, administrators, and agents have been told not to engage with crypto companies by the banking regulator. Failure to comply with the measure may result in Shvetsov’s penalties being applied to these brokers.

Following these decisions, the Central Bank has said that cryptocurrency is a highly volatile virtual currency with little transparency. However, measures made by the central banks of the United Kingdom, China, and Japan may have prompted these restrictions. The Russian Central Bank further claims that the cryptocurrency market entails many investment risks for businesses and individuals with little expertise.

The BCR action has an impact for crypto businesses.

The Russian banking regulator has restricted crypto businesses, although this will only affect new investors. The policy would not be applied to professional and qualified investors in the nation, according to the Central Bank. However, these measures make it difficult for Russians to embrace cryptocurrency.

After directing their operations to stockbrokers in Europe, Asia, and the United States, the regulations were enacted. This happens because cryptocurrency businesses want to be openly traded rather than restricted, as they are in Russia. These new rules, which exclude Russian investors, have, nevertheless, had an impact on plans.

The central bank prohibitions have not been well received by new investors. They have nothing to do with it, though, since it is a circulation measure. In order to keep utilizing cryptocurrencies in Russia, investors must seek for alternatives.

The Russian Bank, on the other hand, said that the restrictions would not apply to popular cryptocurrencies or other lawful tokens. Investors will acquire virtual rubles in order to conduct online transactions or to save in their portfolios. These major currencies are exempt from regulation since they are legal tender in the nation and are supported by the central bank.

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