This week, Russia’s central bank sent a strong message on cryptocurrencies when it said that Russia's local financial infrastructure could not be used for crypto investments.
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Russia, however, will permit cryptocurrency investments through foreign companies, according to deputy governor Vladimir Chistyukhin. “Russian citizens and businesses have the right to acquire and hold cryptocurrency, but not through the domestic infrastructure or intermediaries,” Chistyukhin said.
According to Chistyukhin, the Central Bank of Russia is currently drafting a report related to cryptocurrency. “This report will contain our approaches related to what place we see for cryptocurrency in the Russian financial market. I give a hint - we do not see a place for cryptocurrency in the Russian financial market."
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Previously, the head of the Central Bank of Russia, Elvira Nabiullina, said that Russian financial infrastructure could not be used for any cryptocurrency transactions.
It is estimated that Russians have poured $67 billion into crypto. The country has yet to establish a law regulating Bitcoin mining or taxation, although the current “On Digital Financial Assets” law — which came into force this year — does regulate coin issuance.
This past October, Deputy Finance Minister Alexey Moiseev said that Russia was not planning to copy China and ban Russians from investing in cryptocurrency.
The Bank of Russia recently disclosed that the annual volume of digital currency transactions by Russians equals to roughly $5 billion. The regulator underlined that cryptocurrencies posed inherent risks for the country’s financial stability.