The Bank of Russia Plans to Ban Crypto Issuance and Circulation

Russia has been uncertain about crypto regulation in the country for so many years. The country has not yet finalized its major crypto legislation, known as ‘On Digital Financial Assets’.

According to a legal executive at the Bank of Russia, the bill, when passed, will ban the issuance and circulation of cryptocurrencies. Head of the legal department at Russia’s central bank, Alexey Guznov revealed the news on March 16 during an interview with local news outlet, Interfax.  

The original bill On Digital Financial Assets specified that crypto trading will be permitted in Russia. However, according to Guznov’s latest remarks, the amended document will apparently ban almost everything about crypto except its ownership.

The Bank of Russia official claims the upcoming law will explicitly prohibit the emission and circulation of crypto and would also introduce penalties for violating this law. Meanwhile, Guznov didn’t provide enough clarity about the upcoming bill aside the ban on digital assets issuance and circulation.

Interestingly, while the Bank of Russia is prohibiting local entities from issuing their own digital assets, it has been considering the issuance of its own digital currency. The bank’s head, Elvira Nabiullina revealed in December 2019 that it was exploring the possibility of issuing a digital ruble. 

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