Central Bank of Russia Refused Legalization Of Cryptocurrency and Bitcoin ##Operations with crypto-currencies carry high risks both during exchange3 min read

People who for long time have been monitoring the crypto currency situation in the present Russia over the years might have noticed how the government is not showing much interest on Bitcoin. 

This reason is likely because it is not easy for the government to regulate cryptocurrencies. The Russian central bank is currently working the idea of potentially issuing its own first digital currency using the blockchain. This project seems to have been put on hold, perhaps anything could change in this regard at any time.
In its latest press release, Russia’s central bank on its own has issued some interesting comments. Firstly, the bank officials have warned the public about the risks associated with cryptocurrency ICOs.
 Central Bank of the Russian Federation Communicationon this is a fellow
An unlimited circle of anonymous entities issues crypto-currencies. Due to the anonymous nature of the issuance of crypto-currency, citizens and legal entities may be involved in illegal activities, including legalization (laundering) of proceeds from crime and financing of terrorism.
Operations with crypto-currencies carry high risks both during exchange operations, including due to sharp exchange rate fluctuations, and in the case of raising funds through the ICO (Initial Coin Offering – a form of attracting citizens’ investments in the form of issuing and selling new crypto currency to investors / tokens). There are also technological risks when issuing and handling crypto-currencies and the risks of fixing the rights to “virtual currencies”. This can lead to financial loss of citizens and to the inability to protect the rights of consumers of financial services in the event of their violation.
Given the high risks of circulation and use of crypto-currency, the Bank of Russia considers it premature to admit crypto-currencies, as well as any financial instruments nominated or associated with crypto-currencies, to circulation and use at organized trades and in clearing and settlement infrastructure on the territory of the Russian Federation for servicing transactions with crypto-currencies and derivative financial instruments on them.
However, what really interest people more is the country’s stance toward regulating and legalizing cryptocurrencies. Sometime last year, it seems legalization would only be a matter of time, but things have taken a have taken a different step for the worse. According to Russia central bank, the time is not right to legalize cryptocurrencies, as it is far too “premature” to do so. That is an interesting take on things, considering more consumers and corporations have been showing an interest in cryptocurrency since the start of mid last year

Regardless, this confirms the stance that the institution has maintained regarding cryptocurrencies since late 2014. , the central During those periods, the institution issued an official warning regarding the dangers associated with cryptocurrency and its likes and how consumers should avoid unnecessary financial risks associated with the nascent industry. 

No other institution is allowed to issue money in the Russian Federation besides the central bank, and it obvious this hesitant stance toward cryptocurrencies will be maintained for quite some time to come.
Having said that, the Russia central bank is still collaborating with other federal bodies to actively monitor the cryptocurrency situation. Regulation is still on the agenda, however it remains to be seen how things play out in this regard. At this time, there is no legislation prohibiting the use of cryptocurrency in Russia, though, which means most activities are still considered as legal and ok. However uncertainty should be taken into account at all times, though, as regulators have the right to crack down on any types of activity they consider to be illegal and appropriate
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