The Central Bank of Russia noted that the growth of the cryptocurrency market and the increased involvement of Russians in the cryptoeconomy increases the risks for the financial system.
Bank of Russia November 25
published financial stability review for the III-IV quarters of 2021. The quarterly report of the financial regulator says that the citizens of the Russian Federation conducted cryptocurrency transactions worth 350 billion rubles (slightly less than $ 5 billion). The document used information provided by major Russian banks in July 2021.
In the report, the Central Bank drew attention to the fact that Russian citizens are among the investors who take the most active part in the cryptocurrency market. According to the regulator, the Russian Federation is among the leaders in terms of the number of citizens’ visits to cryptocurrency exchanges.
The Bank of Russia warns that investing money in digital assets for Russian citizens carries different risks, in particular, the use of cryptocurrencies in illegal activities, loss of money due to the volatility of cryptoassets, significant electricity consumption and the creation of a carbon footprint in the production of cryptocurrencies. According to the regulator, the risks are increasing due to the poor awareness of investors about the principles of cryptocurrency markets, fraud and cyber attacks.
“The rapid growth and widespread distribution of digital currencies create ever higher risks both at the global level and for the Russian financial market.”
It should be noted that the regulator has always treated the crypto industry with distrust. In July, the Central Bank said that Russian exchanges should not allow shares associated with companies’ cryptocurrencies to trade. In September, the Bank of Russia recommended that the banking system limit payments sent to exchange offices and cryptocurrency exchanges in order to complicate the procedure for buying and exchanging cryptoassets for citizens. And last week, the Central Bank of the Russian Federation included cryptocurrencies and CFA in a three-year plan for the development of the Russian financial market.
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