The Central Bank of Russia (CBR) is opposed to Russian citizens investing in cryptocurrencies. Elvira Nabiullina, the governor of CBR, said during a recent press conference that the bank’s objection to cryptocurrencies was due to the inherent volatility of crypto. Its potential for use in illegal activities is also a matter of concern.
She further stated that the CBR does not want the nation’s financial infrastructure to be used to facilitate crypto transactions. The CBR, she added, also possesses the means to implement restrictions.
The governor’s statements came after speculation in the media that the authorities were considering two different approaches to regulate cryptocurrencies. The Bank of Russia is in favor of banning crypto purchases. On the other hand, the state Duma is drafting rules for mining coins and running exchanges. The rules will legalize cryptocurrencies even though CBR is opposed to the circulation of cryptocurrencies and for their use in payments.
CBR vs Duma – Differing Views
According to a Reuters report, which quoted sources in the CBR, it is understood that the monetary authorities are talking to market players. The talks are to discuss how Russian investors can be stopped from acquiring crypto assets. One of the sources is understood to have revealed that the CBR’s current stand is for a complete ban. However, some experts are of the opinion that a complete ban will drive the investors underground. This will mean that the state will lose out on taxes that could otherwise be collected.
The parliamentary Financial Market Committee, meanwhile, is considering legalizing crypto trade to be able to collect taxes from crypto transactions and incomes. The head of the committee said that a draft law has been prepared. The draft law proposes that crypto-assets such as bitcoin be considered as property for tax purposes.