Moscow could soon ban cryptocurrency mining

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Moscow could soon ban cryptocurrency mining

Moscow could soon crack down on cryptocurrencies operations in the country, as Russia's central bank released a 36-sided proposal earlier this week.

The main regulator of Russia s financial markets proposed to outlaw the use and mining of cryptocurrencies in the country, citing investor protection, financial stability and environmental concerns.

The Bank of Russia proposed the following amendments to the legislation.

The bank proposed outlawing the use of criptocurrency as a means of payment for goods works and services in Russia in the report.

The authority recommended introducing a ban on investments by financial organizations in cryptocurrencies and related financial instruments, as well as the use of Russian financial intermediaries and Russian financial infrastructure to carry out transactions with cryptocurrencies. The ban on the issuance and circulation of cryptocurrencies, including crypto exchanges and P 2 P platforms, was proposed by the authority. The bank warned about the use of cryptocurrencies in settlements within the framework of illegal activities, in addition to investor protection and financial stability concerns.

The bank also advised a ban on mining.

The bank advised against a ban on mining in the country, arguing that the current scale and spread of mining in Russia is harming the energy supply of residential buildings, social infrastructure buildings and enterprises, as well as the implementation of the environmental agenda of the Russian Federation. Russia is the third biggest centre for miningBitcoin, after the US and Kazakhstan, according to the Cambridge Centre for alternative finance.

Russia emerged as one of the top migration destinations after China imposed its mining ban, and saw its hashrate share rise from 6.8% to 11.2%.

The bank plans to improve the system of regular monitoring of operations with cryptocurrencies, incl. The financial regulators of the countries in which cryptocurrencies are registered to receive information about Russian clients' operations in foreign criptocurrencies markets, is a task for the exchanges to work together with the financial regulators of the countries.