Banning cryptocurrencies in Russia is “quite doable”

At a press conference on Friday, Russia’s central bank governor Elvira Nabiullina increased Fear, Uncertainty and Doubt (FUD) about the state of cryptocurrency regulation in the country. When asked about the surge in digital assets, Nabiullina made the following observations, local news agency finmarket.ru reported in a note translated by Cointelegraph:

“You already know that our attitude towards cryptocurrencies is, subtly, a skepticism. Added to this are the considerable risks for private investors and the considerable volatility of these forms of investment. In addition, cryptocurrencies are opaque in the sense that they are often “used for illegal or criminal operations. Hence, we cannot welcome investment in them. We intend to prevent Russian financial infrastructure from using crypto transactions. That is quite feasible. “

Nabiullina’s testimony came a day after conflicting news the possibility of a blanket ban on cryptocurrency exchanges in Russia. As Cointelegraph recently reported, concerns about cryptocurrencies have even reached the presidential office. Vladimir Putin warns of digital assets.

The countries of the former Soviet Union are still significantly more susceptible to financial crime such as money laundering or tax evasion than their western counterparts. This is because the privatization of state-owned companies after the collapse of the USSR concentrated power in the hands of individuals who at the time had enough “capital” to buy stocks: mafias, gangs, and black market participants.

Banning cryptocurrencies in Russia is “quite doable”
Banning cryptocurrencies in Russia is “quite doable”

In relative terms, the pseudonymous, limitless, instant and unregulated character of cryptocurrencies would therefore be a major factor in criminal activity in the region. To combat the problem, Russia is prioritizing the development of a lawful digital ruble as a significant competitor for privately developed cryptocurrencies.

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