The Bank of Russia commented on the concept of regulation of cryptocurrencies presented by the Ministry of Finance and expressed itsdisagreement with the proposed points.
The Central Bank continues to insist on its position inregarding the prohibition of cryptocurrency transactions. In the concept of the Ministry of Finance, the regulator noted several key points that lead to a threat to financial stability.
Investment risks
The financial regulator is confident that legalizationcrypto assets that do not have an issuer carries risks for investors. Requirements for cryptocurrency operators and restrictions on the access of unqualified investors will not be able to protect citizens. In the event that there is no person responsible for the release of the asset, the risks will be shifted to creditors and depositors. The speculative nature of the crypto market carries great risks that even a qualified investor cannot avoid.
Banking infrastructure
The Central Bank also disagrees with the proposal to integratecryptocurrencies into the Russian banking infrastructure. According to the bank, this will create a parallel financial system that will not obey general rules. In addition, such involvement of the banking sector will create a direct portal for the outflow of funds into the cryptocurrency sector. Deposits, lending and insurance can be channeled into crypto assets, which are highly volatile. This situation could weaken the national economy and increase the risks of using cryptocurrencies in illegal activities.
Anti-money laundering system
The bank also notes that the proposed service“Transparent blockchain” unable to bypass cryptocurrency technology designed specifically for anonymous transactions. Banks will not have sufficient protection from illegal transactions, putting customer funds and their reputation at risk.
Conclusions
The Bank of Russia considers it optimaldecision to ban the use of Russian banking infrastructure for transactions with cryptocurrency. The bank believes that the high involvement of citizens in the cryptocurrency market – This is a signal to introduce a ban as soon as possible.
Legalization of crypto assets if impossiblecomplete control of issuers will give false hope of protecting investors. In the event of a bubble collapse, the state will face social and financial stability risks.
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