Director of the Legal Department of the Russian Central Bank: "We have the will but not the power" to ban Bitcoin

Alexei Guznov, director of the legal department of the Bank of Russia, the central bank of Russia, admitted that it is actually impossible for the country to ban the use of Bitcoin and other cryptocurrencies. In an interview with Russian news agency Interfax, he said that the latest version of Russia's digital asset bill will include a ban on the issuance and sale of cryptocurrencies, and that cryptocurrency issuance and trading should not be legalized in Russia.

Image source: Pixabay

Although cryptocurrencies are not completely legal in Russia, it seems that they will never be banned. Here is the latest news from the Russian government.

Is Cryptocurrency Safe in Russia?

Cryptocurrencies already face a confusing and difficult legal landscape in Russia. Last month, BeInCrypto reported that some bank accounts in the country tied to cryptocurrencies may be frozen. Cryptocurrency payments have also come under fire for undermining the Russian ruble.

The Russian Central Bank has repeatedly expressed support for a cryptocurrency ban and has firmly opposed Bitcoin. However, it seems that enforcing such an order is impossible — something the Russian government recently fully acknowledged.

As recently reported, Alexei Guznov, head of the legal department at the Bank of Russia, said such a ban is simply out of the question. However, he did say that cryptocurrencies are being used for money laundering and illegal activities.

He also stressed that cryptocurrencies are “not money.” However, Bitcoin payments cannot be prevented, and he said “it is unlikely that we will restrict that.”

Russians love cryptocurrencies

It is undeniable that cryptocurrencies are still very popular in Russia. However, it is strange that Russians like cryptocurrencies while their government is very opposed to it.

Last year, it was revealed that an aide to Russian President Vladimir Putin owns a large Bitcoin mining farm. The Russian state has also been considering establishing a financial center on the border between Russia and China specifically for cryptocurrency trading.

So it seems that the Russian government is more than willing to utilize cryptocurrencies for its own purposes, but wants to prevent its people from doing so. The good news is that now they have admitted that they can’t ban cryptocurrencies in the country — but this admission still puts the industry at serious risk. Still, this is good news for those who are worried that Bitcoin might be banned.