Bank of Russia says declaring cryptocurrency holdings would be mandatory even if a ban is imposed

If the Bank of Russia’s proposals for a complete ban on cryptocurrency operations in the country are approved, citizens will still have to declare their investments in this asset class for sale. Elizaveta Danilova, director of the Financial Stability Department at the Bank of Russia, stated on the InvestFuture YouTube channel.

According to her, when selling digital currency on foreign exchanges, citizens should bear in mind the reporting requirements to Russian banks.

“Banks will have questions about the legal provenance of the funds, so it is very important to declare such holdings. And after that it will be possible to return the funds to the Russian financial system,” she explained.

The Bank of Russia, for its part, hopes for an optimal solution to this issue, but will continue to urge colleagues about the high risks of using cryptocurrencies.

“We may face losses for citizens directly investing in these instruments. There will be indirect losses as a result of slower economic growth, funds being withdrawn. This will affect price growth and the emergence of difficulties in finding work,” she added.

Danilova reminded that the Bank does not have the right of legislative initiative, but intends to actively coordinate the proposed measures with the government, the State Duma and the Federation Council.

As reported, Russian authorities are discussing the future of cryptocurrencies in the country. The Finance Ministry this week presented its own concept for market regulation. Also prepared is a roadmap to the end of 2022, envisaging, among other things, responsibility for illicit turnover of digital assets and evasion of disclosure of information about transactions with them.

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