The Deputy Chairman of the Bank of Russia has recently revealed that they intend to regulate, rather than ban, cryptocurrencies.

The Deputy Chairman of the Central Bank Vladimir Chistyukhin told reporters on Monday that Russia aims to regulate the circulation of cryptocurrencies, 

The regulator also referred to changes in legislation that would enable cryptocurrencies to circulate, as opposed to a ban on transfers of funds from citizens’ accounts in Russian banks to crypto exchanges that many were concerned about.

“I think that we will resolve the issue through amendments to the legislation. There will be a more precise definition of how cryptocurrencies can circulate,” Chistyukhin said.

The Bank of Russia previously released a list of requirements for banks to use when determining suspicious transactions, including cryptocurrency transactions, back in September which followed an earlier recommendation in July advising against the  listing of securities tied to crypto assets on Russian stock exchanges.

The Bank of Russia is currently preparing a report on cryptocurrencies that will provide greater clarity on the role of cryptocurrencies in Russian finance, Chistyukhin revealed:

“I think we will publish a report on cryptocurrencies in the near future. This report will contain our approaches to the place for cryptocurrency we see in the Russian financial market. I give a hint – we do not see a place for cryptocurrency in the Russian financial market,”.

According to the latest reports from local media, Russian citizens and businesses will have the right to acquire and store cryptocurrency, but will not be able to do this through domestic infrastructure or intermediaries.

Despite the insinuation that cryptocurrency will not be banned, the Deputy Head of the Central Bank’s ‘hint’ that cryptocurrency will have no place in Russia’s financial market may see the digital currency unable to thrive, if legislators proceed to restrict rather than aid its growth.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.