Russian Central Bank Issues Warning on Digital Currencies and ICOs

Russian Central Bank Issues Warning on Digital Currencies and ICOs

Russian central bank has issued a new statement on the dangers of digital currencies and initial coin offerings. The bank of Russia, in keeping with a note published the previous day, appears to be responding to the growing media profile of each initial coin offerings, via which cryptographic coins based on blockchain technology are sold in a crowd sale, in addition to digital currencies themselves in Russia. However, even an aide to Russian president Vladimir Putin has stated he is moving to keep an initial coin offering of his own.

The Bank of Russia

The statement notes the excessive dangers of exchanging digital currencies, in addition to participation in initial coin offerings defined as a type of attracting residents’ investments. The central bank went on to mention that, at this level, it will not green light any digital currency exchange on any official exchanges, nor would it approve the usage of the tech for infrastructure functions. In addition, the Bank of Russia does not serve as an economic regulator in Russia; that function falls to the State Duma and the Ministry of Finance.

Russia’s central bank stated:

“Given the excessive risks of circulation and use of digital currency, the bank of Russia considers it premature to admit digital currencies, as well as any financial instruments nominated or related to digital currencies, to circulate and use at prepared trades and in clearing and settlement infrastructure on the territory of the Russian Federation for servicing transactions with digital currencies and by-product economic instruments on them.”


The statements come on the heels of China’s move to prohibit initial coin offerings and more tightly manage the environment of exchanges providing access to the ones token sales. However, China-based ICOINFO froze its platform remaining week beforehand of the information, and is scheduled to start returning cash to customers this weekend.

This morning, Hong Kong’s chief securities regulators issued a warning of their own on initial coin offerings, remarking that a few tokens can also represent securities echoing statements issued by officials in Singapore, Canada and the united states in latest weeks.

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