In a press release, the CBR notes that crypto products remain a risk due to high volatility, pricing issues, limited liquidity, lack of transparency, and unclear regulations. Consequently, managers of stock exchanges have specifically been advised against offering such investment products to unqualified investors. Furthermore, according to the institution, such products are not ideal for individuals without experience in handling digital currencies. Interestingly, the bank excluded Central Bank Digital Currencies that comply with Russian laws. The new declaration from CBR follows a June 2021 move to include cryptocurrencies in its survey program.
Russia’s crypto regulation landscape
The new direction from the regulator adds to the country’s growing list of crypto regulations. One of the notable regulations prohibits Russian state employees from owning cryptocurrencies. Additionally, the government requires election candidates to reveal any cryptocurrency holdings. In Russia, the country first announced official crypto regulation last year. The government introduced a legal system that identifies cryptocurrencies as a taxable property. Last year’s regulations showed the country’s intention to back away from a total cryptocurrency ban. The laws allowed the country’s banks to open up cryptocurrency exchanges under the central bank’s supervision. Additionally, it has also emerged that Russia is preparing a law that will enable authorities to confiscate illegally obtained cryptocurrencies. The move by the state also stems from the perennial concerns that cryptocurrencies can be used to facilitate criminal activities. The state argues that cryptocurrencies are increasingly used for bribery. [coinbase]
