In a Friday press conference, Cardinal Banking concern of Russian federation governor Elvira Nabiullina further escalated the fear, uncertainty and doubt (FUD) surrounding the state of crypto regulation in the country. When asked about the rise of digital assets, Nabiullina gave the following remarks, as reported by local news outlet finmarket.ru and translated by Cointelegraph:

"You know that our attitude towards cryptocurrencies is of, to put it mildly, skepticism. Related to this are the pregnant risks for retail investors and the substantial volatility for this type of asset. In addition, cryptocurrencies are opaque in that they are frequently used for illegal operations or criminal nature. Therefore, we cannot welcome investments in them. We seek to foreclose the Russian financial infrastructure from using crypto transactions. This is quite doable."

Nabiullina'due south remarks came ane day afterward conflicting reports pointed to the possibility of a coating ban on cryptocurrency exchanges in Russia. Every bit Cointelegraph recently reported, concerns nigh crypto accept even fabricated their manner to the presidential office, with Vladimir Putin issuing a warning about digital assets.

Related: Bank of Russian federation to ban mutual funds from investing in Bitcoin

In context, countries of the former Soviet Union remain far more susceptible to financial crimes, such every bit money laundering or tax evasion, than their Western counterparts. This is because the privatization of state enterprises from the breakup of the USSR concentrated ability in the hands of individuals who possessed enough "capital" to buy shares at that time — mafias, gangs and black-market participants.

Relatively speaking, the anonymous, borderless, instantaneous and regulatory-lacking nature of crypto would therefore exist a greater enabler of criminal activities in the region. Partly to gainsay the problem, Russia is prioritizing the evolution of a regulatory-compliant digital Ruble every bit a sizable competitor to cryptos adult in the individual sector.