Local media reports that the Central Bank of Russia is now investigating Russian banks and cryptocurrency exchangers. These platforms allow transactions between people, which regulators believe can lead to financial loss and fraud.
Russian Banks asked by Central Bank for details on Crypto-Related Transactions
Late December saw the Central Bank of Russia send commercial banks a revised reporting form regarding transactions. This request was for information about crypto-exchange website money transfers. This includes transactions between private parties, such as cards or wallets that are registered under the names of pseudonyms.
According to a Kommersant new report, the regulator will ask banks institutions for details on their interaction with crypto exchangers, such as cleanbtc.ru and 100bitcoins.com.
A leading newspaper claims that more than 400 exchangers are now offering services for Russians via the Internet. They estimate that Russia’s over-the counter crypto market is worth $1.3 billion each month. About half of this total is held by the Russian Federation.
Crypto exchangers frequently list the logos and names established payment institutions and financial providers as their partners on their websites, such as Western Union and Tinkoff Bank. Webmoney and Koronapay have both denied ever cooperating with cryptocurrency trading platforms.
CBR Says Crypto Exchangers Can Operate without Registration
Bank of Russia suggests that exchangers offer services to purchase and sell cryptocurrencies, without having to register their activity or incur any financial obligation. The transaction are anonymous, meaning that no one can see the reason for the purchase or sale and their source to determine risks, such as money laundering.
This is a monetary authority that has been known for being strict on cryptocurrency. It also observed that many trading sites accept payments from individuals to digital wallets or bank cards issued to them, as well as to accounts. This “creates the risk of citizens losing money and getting involved in fraudulent schemes,” the regulator warned.
Alexander Bastrykin, head of Russia’s Investigative Committee said that online platforms offering anonymity for crypto-buying and selling was still a matter of debate. Alexander Bastrykin also advocated mandatory identification of all Russian cryptocurrency users.
Since the last few years, authorities have been targeting crypto-exchangers. Part of the problem is that a range of crypto-related activities, including trading, remain unregulated even after the adoption of the law “On Digital Financial Assets.” A working group at the parliament is now preparing proposals to fill the gap. According to Herman Neglyad, the Rosfinmonitoring watchdog’s Deputy Director, discussions on crypto exchangers must end by 2022.
What do you think Russia will do to protect online crypto-exchangers? Comment below to share your views.
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