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The central banking institution of the largest country by land mass – the Bank of Russia – has urged the local government to impose a general prohibition on all cryptocurrency companies on Russian territory. It argued that digital assets are reminiscent of a pyramidal system, undermine monetary policy sovereignty and threaten the local financial network.
Russia Calls for a Crypto Ban
Many Russian authorities do not classify as the most crypto-friendly politicians since they have repeatedly opined against the asset class.
Some notable examples include Elvira Nabiullina – the Chief of Bank of Russia – who stated last year that investing in digital assets is more dangerous than any other strategy. Deputy Governor Sergey Shvetsov went even further, saying dealing with bitcoin is so risky that it can be compared to entering a minefield.
Keeping these adverse viewpoints in mind, it is no wonder that today (January 20), Russia’s central bank proposed a China-style ban on everything crypto.
According to the financial institution, bitcoin and spare parts could undermine the monetary stability of emerging markets as the world's largest nation by land mass is among them. Moreover, most of the people living in these countries lack financial knowledge, the bank added.
In addition, the organisation claimed that the use of cryptocurrencies opposes Russia's green agenda and compromises the state's energy supplies. Interestingly, however, the extraction of digital assets flourishes in the country, and it is the third largest miner in the world, falling behind the United States and Kazakhstan.
At the end of last year, Russia’s central bank came up with another anti-crypto proposal. At the time, the organisation wanted to ban investments in digital assets in Russia, citing similar potential risks.
Prior to that, Alexey Moiseev – Russia’s Deputy Finance Minister – informed that the Russian Federation has no plans to impose a complete crackdown on trading with cryptocurrencies. Unlike many of his colleagues, he even expects blockchain technology to become part of the future currency system.
Pakistan For the same purpose.
Another central banking institution that proposed a total crypto ban is the State Bank of Pakistan. Last week, he argued that bitcoin and the altcoins have illegal status, are unable to facilitate commercial activities, and could be used to fund acts of terror and money laundering.
The organisation added that numerous exchanges, such as binance, pose a risk for investors. As such, the State Bank of Pakistan is prepared to put an end to the "unauthorized operations" of digital asset trading platforms by imposing sanctions on them.
Possible legislation has faced some local reaction as a considerable part have already entered the crypto market. Among them was Waqar Daka, a popular Pakistani television host.
