Russia becomes the latest to tighten regulations against cryptocurrencies with a central banking proposal to ban mining and trading.
The Bank of Russia proposed a blanket ban on the use and creation of all currencies, citing dangers posed to the country’s financial system.
«Potential financial stability risks associated with cryptocurrencies are much higher for emerging markets, including in Russia,» the central bank said.
This marks further tightening in Russia which already prohibits crypto payments and investments by mutual funds.
The ban will not apply to crypto assets held by Russians abroad.
Mining Vacuum
In addition to an estimated $5 billion lost in trading turnover, the ban will impact the global mining market with Russia ranked as the third largest market after the U.S. and Kazakhstan.
Similarly, the U.S. and other markets benefitted from increased mining activity following bans in China last year.
«I Believe That it Has Value»
Interestingly, Russia’s President Vladimir Putin has spoken about cryptocurrencies before in a positive light, despite the proposed ban.
«I believe that it has value,» he said in a «CNBC» report last October. «Cryptocurrency is not supported by anything as of yet. It may exist as a means of payment, but I think it’s too early to say about the oil trade in cryptocurrency.»
