Crypto: Russian bank sees threat to well-being of citizens

Moscow, Jan 20 (Sputnik): The acquisition of cryptocurrencies may directly threaten the well-being of citizens, the Russian Central Bank said in a report on Thursday, adding that such investments create risks for the financial market.
“The acquisition of cryptocurrencies by citizens poses a direct threat to their well-being, there are no guarantees of the return of these funds. In the case of massive distribution of this kind of investment, this can lead to the realization of social risks,” the regulator said.
The risks of financial stability from the use of cryptocurrencies are still limited, but they will increase significantly with more involvement of citizens, the report read.
The Central Bank called for banning cryptocurrency mining in Russia over significant risks for economic and financial stability.
“The Bank of Russia believes that the current scale and further spread of cryptocurrency mining in Russia carry significant risks for the economy and financial stability,” the report said.
The bank also proposed to ban the issuance, organization of circulation and exchange of cryptocurrencies in Russia.
“Introduction of a ban on organizing the issuance and (or) issuance, organization of the circulation and exchange of crypto-currencies (including crypto-exchanges, crypto-exchangers, P2P platforms) on the territory of the Russian Federation and establishing liability for violation of this ban,” the report said.