Crypto lovers, there is bad news from Russia for you

Russia's central bank is reportedly planning to ban cryptocurrency investments in the country. According to two sources from financial markets, this is due to the risk to financial stability of the increasing number of crypto transactions.

The central bank is said to be in talks with market participants and experts about a possible ban.

If the ban is approved by lawmakers, it will apply to purchases of new crypto assets. But not for those bought in the past, said one financial market source.

Another source close to the Bank of Russia said the central bank's position is now 'total rejection' of all cryptocurrencies.

The central bank told Reuters it was preparing an advisory report to voice its views on the matter. But the agency did not comment on specifics.

For years, Russia has been debating against cryptocurrencies. The money is said to be used for money laundering or financing terrorism.

Finally, there is a legal status regarding cryptocurrencies in 2020, but prohibits its use as a means of payment.

Some time ago, the First Deputy Governor of the Central Bank Ksenia Yudaeva said the increasing popularity of cryptocurrencies raised concerns about risks to financial stability.

The situation in developed countries is increasingly similar to the so-called shadow financial system," said Yudaeva. He also added that the use of cryptocurrencies could reduce the efficiency of monetary policy.

Yudaeva also commented on the rules in China in this regard, and said Russia needed further adjustments to cryptocurrency regulations. China is indeed known to be one of the countries that is quite tough with crypto.

For example last September, China banned all crypto transactions and mining, hit Bitcoin and other major coins, and suppressed crypto and Blockchain related stocks.