Russia’s Central Bank Proposes Ban on Crypto Mining and Trading

Russia’s central bank proposed a blanket ban on crypto-related activities such as issuance, exchange, and mining, citing threats related to monetary stability. In its consultation paper titled, Cryptocurrencies: trends, risks, measures, presented during an online press conference, the bank said it seeks to ban financial institutions from investing in or carrying out any operations related to cryptocurrencies. “The breakneck growth and market value of cryptocurrency is defined primarily by speculative demand for future growth, which creates bubbles. Cryptocurrencies also have aspects of financial pyramids, because their price growth is largely supported by demand from new entrants to the market,” the central bank stated in a 36-page report published on Thursday. The Central Bank also seeks to ban crypto exchanges or any other platforms that facilitate the circulation of cryptocurrencies. Additional proposals include 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 is the third biggest global crypto miner just behind the United States and Kazakhstan after China cracked down on bitcoin mining last year. BitRiver, Minespot, and BitCluster are among the biggest crypto mining companies in the country. As of yet, conducting crypto transactions is illegal in the country, but investing and b...