Following China's Strict Action, Russia Immediately Stops Crypto Transactions In The Country

Russia immediately followed China's steps to ban crypto activities. (photo; doc. unsplash)

JAKARTA - The Deputy Governor of Bank Russia, Vladimir Chistyukhin, hinted on Monday, December 20 that privately managed cryptocurrencies may soon be out of use on the country's financial markets

The TASS news agency, citing Chistyukhin, also reported that the central bank was working on a report outlining proposals to limit the use of such a currency in Russia.

Russia, as reported by Reuters, has opposed private cryptocurrencies for years, saying they could be used in money laundering or to finance terrorism. But recently stepped up its campaign that it plans to issue its own digital ruble.

"I'll give you a hint: We see no room for cryptocurrencies on the Russian financial market," Chistyukhin was quoted as saying by TASS.

Last week, Reuters also cited sources as saying the central bank saw risks to financial stability from the increasing number of crypto transactions and advocated a "total rejection" of them, which resulted in bitcoin's price plummeting.

Central bank governor Elvira Nabiullina said her bank could not accept investments in cryptocurrencies, which Russia has used in annual transactions worth about $5 billion.

The Bank of Russia previously said that the country needed further adjustment of cryptocurrency regulations, referring to the experiences of China and India.

In September, China intensified its crackdown on cryptocurrencies with a complete ban on all crypto transactions and “mining”, which briefly hit the prices of bitcoin and other major coins and put pressure on crypto and blockchain-related stocks.

Meanwhile, the Bank of Russia also aims to join the global trend of developing its own digital currency to help modernize the financial system, accelerate payments and counter any threats from other cryptocurrencies.