Russia proposes a ban on cryptocurrency usage and mining

<p>Russia's central bank has proposed a ban on cryptocurrency use and mining on Russian soil, citing threats to financial stability, citizens' well-being, and the country's monetary policy sovereignty.</p> <p>For years, Russia has argued that cryptocurrencies could be used to launder money or fund terrorism. It eventually granted them legal status in 2020, but prohibited them from being used as a form of payment.</p> <p>In a report released on Thursday, the central bank stated that speculative demand was primarily responsible for cryptocurrencies' rapid growth, and that they exhibited characteristics of a financial pyramid, warning of potential market bubbles that could jeopardise financial stability and citizens.</p> <p>The bank proposed prohibiting financial institutions from conducting any cryptocurrency transactions and suggested that mechanisms be developed to prevent transactions involving the purchase or sale of cryptocurrencies for fiat currencies.</p> <p>Cryptocurrency exchanges are among those targeted by the proposed ban. Binance, a cryptocurrency exchange, stated that it was committed to working with regulators and hoped that the publication of the report would spark discussion with the central bank about protecting the interests of Russian crypto users.</p> <p>According to Elizaveta Danilova, head of the central bank's financial stability department, restrictions on cryptocurrency ownership are not in the works.</p> <p>According to the bank, Russians are active cryptocurrency users with an annual transaction volume of approximately $US5 billion ($6.9 billion).</p> <p>The Chinese government is cracking down on cryptocurrencies.</p> <p>The central bank stated that it would collaborate with regulators in countries where crypto exchanges are registered to collect data on Russian clients' operations.</p> <p>It referred to steps taken by other countries, such as China, to limit cryptocurrency activity.</p> <p>In September, China stepped up its anti-cryptocurrency crackdown with a blanket ban on a