Russia’s central bank is considering prohibiting investing in cryptocurrencies in the country amid concerns that it could threaten financial security.
Reuters reported that the bank is looking into a possible ban that would apply to new purchases of crypto assets. If the ban is approved, it would not apply to assets purchased in the past.
The central bank did not provide specifics but told Reuters that it was preparing an advisory report on cryptocurrency.
Another source told Reuters that the bank’s current position on cryptocurrencies was a “complete rejection.”
Following reports of the possible ban, bitcoin fell from around $49,144 to $48,656, Reuters added.
Central Bank First Deputy Governor Ksenia Yudaeva has voiced concerns about cryptocurrencies and said earlier this month that “the situation in developed market countries more and more resembles the so-called shadow financial system,” according to Reuters.
Yudaeva added that Moscow needed to adjust its cryptocurrency policies, noting that China had banned all cryptocurrency transactions in September, Reuters noted.
In Russia, cryptocurrencies have had legal status since 2020; however, they have been banned as a payment. Moscow has been a longtime opponent to cryptocurrency amid concerns it could be used for money laundering or financial terrorism, the news service added.