Central Bank of Russia plans to get information from commercial banks regarding money transfers between private individuals. This includes clients trading in cryptocurrency. This measure will likely affect cryptocurrency exchangers online, which are accused by the regulator of illegal operations.
Central Bank will inspect transactions among Russians exchanging cryptocurrency
The Bank of Russia will request additional information from banks that process transfers between individuals as part of its efforts to crack down on illegal transactions. Local media reported that a variety of websites using accounts in the names of fake persons, such as online bookmakers or sites offering crypto trading services were affected by this move.
RBC, the Russian business news portal reported that Monday’s report by CBR stated that the regulator sent banks a brand new transaction reporting form. CBR plans to ask for information regarding money transfers between Russians.
In a press release quoted by Prime, the monetary authority later clarified that the measure does not imply imposing total control over transactions of individuals but is “aimed at identifying risk areas associated with the use of payment cards and wallets issued to fictitious individuals by cryptocurrency exchangers, online casinos and unscrupulous participants in the financial market for settlements with Russian citizens.”
Bank of Russia also stated that it will collect anonymous data only from banks providing payment services for individuals if their platforms are used to commit illegal acts. In addition, it stated it did not intend to establish new reporting procedures. It explained that this meant certain cases when large amounts of money are moved in several transactions in less than 24 hours to one recipient.
CBR states that such transactions clearly are not normal payments between individuals or small businesses. The central bank added that when transactions meeting certain criteria are observed, it could ask for additional data from the banks’ registers but insisted it would not request information that could be used to identify individual customers.
Russian authorities are now discussing proposals to comprehensively regulate cryptocurrencies as many related activities, including trading and mining, remain outside the scope of the law “On Digital Financial Assets” which went into force in January. According to reports, the Bank of Russia maintained its opposition to the free circulation of Bitcoin and other digital currencies in Russia, in talks that were held at the State Duma.
Also, the monetary authority will be exploring ways to stop Russians investing in cryptocurrency assets. This could include blocking payments of cards to specific recipients like coin trading platforms. That’s despite estimates in its recently published Financial Stability Overview for the second and third quarter of 2021 suggesting that the annual volume of digital currency transactions made by Russian residents amounts to around $5 billion.
Do you think Russia’s central bank will collect only anonymized data for transactions between Russian crypto users? Comment below to share your opinions.
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