Support The Moscow Times!

Russian Central Bank Seeks to Ban Crypto Mining, Investment

Kirill Zykov / Moskva News Agency

Russia’s Central Bank proposed Thursday to ban cryptocurrency investment and mining as governments around the world crack down on the decentralized currencies, citing threats to monetary stability.

The Central Bank said “speculative demand” is driving the rapid growth of decentralized cryptocurrencies and risks creating a bubble in the market.

Cryptocurrencies also have signs of a financial pyramid as increase in their prices is largely driven by demand demonstrated by new market participants,” it said.

In its consultation paper outlining its position, the Bank said it seeks to ban financial institutions from investing in or carrying out any operations with cryptocurrencies.

The Central Bank also seeks to ban cryptocurrency exchanges and any platforms that facilitate the circulation of cryptocurrencies.

The Bank estimates that Russian citizens’ transactions using decentralized cryptocurrencies amount to $5 billion per year.

It also proposed banning crypto mining, citing the threat to Russia’s financial stability through its “unproductive consumption” of electric power “and the implementation of Russia’s environmental agenda.”

Russia has the world’s third-largest share in the global crypto mining market behind the United States and Kazakhstan. China cracked down on bitcoin mining last year.

The Central Bank plans to draft amendments to Russian legislation to ban crypto mining and investment in the coming months, its head of financial stability told the state-run RIA Novosti news agency.

Conducting transactions with cryptocurrencies is illegal in Russia, but investing and buying crypto through exchanges is permitted under a recent change.

The Central Bank is also planning to issue its own digital ruble as it seeks to retain control of its financial and monetary system.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more