The Governor of the Russian Central Bank Elvira Nabiullina said: “We cannot welcome investments in cryptocurrencies.

During a press conference on Friday, the governor of the Russian central bank Elvira Nabiullina increased the fear, uncertainty and doubt (FUD) about the state of crypto regulation in the country.

When asked about the rise of the digital asset, Nabiullina made the following comments, reported by the local news site finmarket:

They know that our stance on cryptocurrencies is skeptical to say the least. Associated with this are considerable risks for private investors and considerable volatility for this asset class. Cryptocurrencies are also ambiguous in that they are often used for illegal activity or a criminal nature. Hence, we cannot welcome investment in them. We are trying to prevent Russian financial infrastructure from using cryptocurrency transactions. That is perfectly feasible.

Nabiullina’s comments come a day after conflicting reports pointed to the possibility of an outright ban on crypto exchanges in Russia. As Cointelegraph recently reported, crypto concerns have even reached the president’s office, with Vladimir Putin issuing a warning about digital assets.

Related: Bank of Russia Bans Mutual Funds From Investing In Bitcoin

The countries of the former Soviet Union are still more prone to financial crime such as money laundering or tax evasion than Western countries. This is because the privatization of state-owned companies after the collapse of the Soviet Union concentrated power in the hands of individuals who at the time had enough “capital” to buy stocks – mafias, gangs, and other black market participants.

In comparison, the anonymous, limitless, instant and unregulatory nature of cryptocurrencies will therefore be a major cause of criminal activity in the region. To remedy this, Russia is prioritizing the development of a lawful digital ruble as a major competitor for cryptocurrencies developed in the private sector.