This is not good news, BTC price could be dump even more.
Alexey Guznov, head of the legal department at Russias central
bank, revealed the news in an interview with local news agency Interfax on March 16.
Issuance and circulation of crypto in the country poses an unjustified risk
Although the original bill On Digital Financial Assets stipulated that cryptocurrency trading would be allowed in Russia, the amended document will apparently prohibit nearly everything about crypto except holding, according to Guznovs latest remarks.
The official said that the upcoming law will explicitly prohibit the issuance and circulation of cryptocurrency and would introduce penalties for violating this law. Guznov argued:
In terms of the functioning of the financial system and consumer protection system, legalization of the issuance and facilitating the circulation of cryptocurrencies is an unjustified risk. As such, the bill explicitly prohibits emission and organization of cryptocurrency circulation, introducing legal liability for violating these rules.
Russias central bank would unlikely be able to regulate Bitcoin transactions
Besides claiming that the crypto bill would ban Russian financial institutions from issuing digital assets, Guznov provided little clarity about the upcoming bill. When asked whether the Bank of Russia wants to ban residents from converting crypto into local fiat currency, the Russian ruble, or a foreign currency, Guznov did not provide a direct answer.
I was actually shocked to hear this news because Russia is one of the countries which we know is in the list of those which support cryptocurrency. I believe the crypto world wants a legit article regarding this. But if it is really true, I think it is just a formed step and still in tbe process of observation. At a time like this, cashless system is needed. But if this is due to the decline of BTC also, then the decision is reasonable.