Legalizing crypto could “fundamentally” undermine Russia’s financial system, the nation’s Central Bank has warned.

According to the media outlet Informer, Elizaveta Danilova, the bank’s Director of Financial Stability, said that allowing crypto into the Russian financial system would bring about “fundamental risks.”

The Ministry of Finance wants to legalize crypto – and regulate the use of tokens in the country. Crypto currently has no legal status in the nation, and trading tokens is neither illegal nor regulated.

But Danilova warned that “legalization” could “harm the well-being of citizens.” She said that it could also compromise the stability of the financial system and “pave the way” for an influx of illegal activities.

However, Danilova suggested that Central Bank was not opposed to allowing the use of crypto in international settlements. The bank could yet approve the legalization of crypto mining. But, crucially, the bank wants miners to exchange their coins on international trading platforms – and keep them out of the Russian economy.

The Central Bank’s long-serving Governor Elvira Nabiullina, recently said that she had not changed her mind about crypto. She stated that the bank had a “negative attitude towards the use of cryptocurrency in the domestic market.” Nabiullina, a long-standing crypto critic, also said she opposed the use of tokens “in internal settlements.”