The central banking institution of the largest country by landmass – the Bank of Russia – urged the local government to impose a blanket ban on all cryptocurrency endeavors on Russian territory. It argued that digital assets remind of a pyramid scheme, undermine the sovereignty of monetary policy, and threaten the local financial network.
Russia Calls for a Crypto Ban
Many Russian authorities do not classify as the most crypto-friendly politicians since they have repeatedly opined against the asset class.
Some notable examples include Elvira Nabiullina – the Chief of Bank of Russia – who stated last year that investing in digital assets is more dangerous than any other strategy. Deputy Governor Sergey Shvetsov went even further, saying dealing with bitcoin is so risky that it can be compared to entering a minefield.
Keeping these adverse viewpoints in mind, it is no wonder that today (January 20), Russia’s central bank proposed a China-style ban on everything crypto.
According to the financial institution, bitcoin and the alternative coins could shake the monetary stability of emerging markets as the world’s largest nation by landmass is among them. Also, most residents of such countries lack sufficient financial literacy, the bank added.
Furthermore, the organization claimed that cryptocurrency mining opposes Russia’s green agenda and jeopardizes the state’s energy supplies. It is worth noting, though, that digital asset mining thrives in the country, and it is the third-largest miner globally, falling behind the USA and Kazakhstan.
At the end of last year, Russia’s central bank came up with another anti-crypto proposal. Back then, the organization wanted to prohibit digital asset investments on Russian soil, citing similar potential risks.
Prior to that, Alexey Moiseev – Russia’s Deputy Finance Minister – informed that the Russian Federation has no plans to impose a complete crackdown on trading with cryptocurrencies. Contrary to many of his colleagues, he even expects blockchain technology to become a part of the future monetary system.
Pakistan Has the Same Intentions
Another central banking institution that proposed a total crypto ban is the State Bank of Pakistan. Last week, it argued that bitcoin and the altcoins have illegal status, are not able to facilitate trade activities, and could be used to finance acts of terrorism and launder money.
The organization added that many exchanges, such as Binance, pose a risk to investors. As such, the State Bank of Pakistan is willing to halt the “unauthorized operations” of digital asset trading venues by imposing penalties against them.
The possible legislation faced some backlash from locals as a considerable chunk have already entered the crypto market. Waqar Daka – a popular Pakistani TV host – was one of them.