Russia’s Central Bank Says “Nyet” to Cryptocurrency

Announcements, Crime, News, Regulation | September 5, 2017 By:

The Bank of Russia has come out against cryptocurrency trading, saying citizens “can be involved in illegal activities.”

The statement from the central bank underlines the conflicts going on within the Russian government. The National Settlement Depository of the Moscow Stock Exchange is currently working on building an infrastructure for trading crypto, while several government officials have issued both pro-cryptocurrency and anti-cryptocurrency statements. Most recently, deputy finance minister Alexey Moiseev said that only “qualified investors” may be allowed to purchase digital currency, which he termed “a pyramid scheme.” The Russian Parliament is debating regulations, with a new law expected this fall.

The Bank of Russia was firm in its opposition. “Crypto-currencies are issued by an unlimited circle of anonymous entities,” said its statement. “Due to the anonymous nature of the issuance of crypto-currency, citizens and legal entities can be involved in illegal activities, including legalization (laundering) of proceeds from crime and financing of terrorism. Given the high risks of circulation and use of crypto-currency, the Bank of Russia considers it premature to admit crypto-currencies, as well as any financial instruments nominated or associated with crypto-currencies, to circulation and use at organized trades and in clearing and settlement infrastructure on the territory of the Russian Federation for servicing transactions with crypto-currencies and derivative financial instruments on them.”