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Cryptocurrencies may be banned in Russia

The new version of the bill on digital financial assets contains a ban on the issuance and legal use of cryptocurrencies in Russian jurisdiction.

The head of the legal department of the Central Bank of the Russian Federation, Alexey Guznov, shared information on a bill being prepared in the government, the adoption of which will limit cryptocurrency activities in Russia. Guznov believes that the launch of cryptocurrency startups carries an unjustified risk for the economy. According to the head of the Central Bank department, the main problem of cryptocurrencies is their convenience for money laundering: 

“During the discussion on the draft law, we objected to the fact that this, so to speak,“ tool ”was legalized as an object of the appeal. We are now approaching consensus with the market and other participants in the discussion. The draft law expressly states a ban on the issue, as well as on the organization of the circulation of cryptocurrency, and introduces liability for violation of this ban ”

It is worth noting that Russian citizens will be able to buy and trade crypto on foreign exchanges, but in the country, the functioning of trading crypto-platforms will be impossible.

Alexey noted that the alleged restrictions should not impede the development of technology in the country and are a necessity at the moment.

Recall that in February 2020, the Central Bank of the Russian Federation and the Federal Security Service agreed to ban the use of cryptocurrencies as a means of payment.