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Could the Russian Central Bank Try to Ban Bitcoin Mining?

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Cryptocurrency enthusiasts and business insiders have reacted with alarm to a recent interview given by the head of the central Bank of Russia’s legal department hinting that cryptocurrencies could be outlawed in the country – leading to a possible block on Bitcoin (BTC) and altcoins mining.

Source: iStock/blinow61

Recent comments made by the central bank legal chief Alexei Guznov could have far-reaching consequences for cryptoassets in Russia. Guznov suggested that the Bank of Russia remains strongly opposed to cryptoassets, sees them as highly risky and would support a ban on their circulation.

But per media outlet RBC, multiple experts are calling for calm – and suggesting resourceful miners could stay afloat, with others stating that the central bank’s ban will likely never materialize.

RBC quotes Pyotr Lyalin, the deputy director for legal affairs and technology at the Synergy Research Group, as stating that miners could find a workaround, as miners could turn their focus on mining tokens outside Russia.

Lyalin stated that Chinese miners – who have also had to deal with government restrictions – have already successfully adopted a similar approach.

Another tech expert stated that as the central bank is looking to specifically outlaw the circulation and issuance of cryptocurrencies, miners could find themselves safe whatever the bank decides – with fraudulent crypto outfits the main token of the bank’s ire.

The same news outlet also quotes Yuri Brisov, a digital law expert at the Russian Bar Association, as stating that miners need not be concerned as the government will almost certainly stop the central bank from getting its way.

He stated,

“Any ban on mining and cryptocurrencies would lead to a total decline in the Russian blockchain industry. That’s why developed countries, who understand the risks associated with cryptocurrency-related money laundering and tax evasion, have not banned cryptocurrencies and mining. A ban would mean limiting the country’s potential for economic growth and IT development.”


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