The Central Bank of Russia has admitted the impossibility of circumventing sanctions with the help of bitcoin.

According to the response of Ksenia Yudaeva, First Deputy Governor of the Central Bank of Russia, to the proposals of the deputy of the United Russian State Duma, Anton Gorelkin, it is impossible to use cryptocurrencies to circumvent sanctions, especially for large payments. Reported by RIA Novosti.

Yudaeva explained the Central Bank’s position with “increased regulatory risks.”

“Regulators in the US, EU, UK, Japan, Singapore have started to take measures to prevent sanctions from being circumvented using cryptocurrencies. In this context, crypto exchanges are introducing some restrictive measures, up to and including blocking access to funds for Russian investors.”

The Central Bank representative added that digital currencies serve to pay much less than traditional payment systems, so large payments can be detected and blocked by foreign regulators.

The provisions of the Digital Financial Assets Act also prohibit the use of cryptocurrencies as a means of payment for goods and services. The Central Bank finds it “unreasonable” to change this norm.

Overall, the regulator fears that the introduction of private digital currencies into the financial market of the Russian Federation “could pose a number of significant risks to the well-being of citizens, the stability of the financial system and the economic situation.” the security of the country.”

At the same time, the Central Bank is ready to consider the issue of regulating mining in Russia, subject to a legislative ban on the circulation of cryptocurrencies in the country.

Following the results of the roundtable in March, Deputy Anton Gorelkin proposed allowing Russian individuals and legal entities to make payments in digital currency among themselves and in cooperation with foreign counterparties. He also advocated free conversion of cryptocurrencies into rubles, introducing a preferential tax regime for this market, consolidating the legality of mining, and government support.

Recall that the Ministry of Finance developed a draft law “On Digital Currency” based on the concept approved by the government.

The Central Bank of the Russian Federation has proposed to ban bitcoin and fines up to 1 million rubles.

Earlier, Russian Prime Minister Mikhail Mishustin acknowledged the need to integrate cryptocurrencies into the Russian economy, stating that appropriate decisions should be taken jointly with the Central Bank of the Russian Federation. In response, the regulator advocates a complete ban on circulation and mining of cryptocurrencies despite sanctions.