According to local reports, the central bank of Russia is planning to take steps to throttle the rise in crypto trading activity in the country, including blocking some digital currency purchases, in a bid to tackle suspicious activity. The Bank of Russia has begun working closely with local banks to identify potentially suspicious crypto payments, instructing them to halt payments sent to digital currency exchanges to prevent “emotional” bitcoin purchases.
The new measures are designed to offer more protection to unsuspecting investors.
First Deputy Governor of the Bank of Russia Sergey Shvetsov said the measures were designed to offer more protection to unsuspecting investors, highlighting the risks of digital currency market “crashes to zero” and the impact this can have on investors. It comes following a previous directive from the central bank for banks to pay more attention to certain types of transactions, including those involving crypto exchanges and other digital asset services. The central bank has demanded local banks to block the accounts of some customers and block credit cards and e-wallets suspected of being involved in dubious transactions.
The new proposals are being brought forward to curb the illegal uses of crypto.
More than ten different recipient payers per day or greater than 50 per month should be subject to the increased scrutiny. Other criteria include that individuals with an average balance of less than 10% of their daily transaction volumes should be flagged for a week. The new proposals are being brought forward to curb illegal uses of cryptocurrency, with the Bank of Russia identifying this as a growing problem within Russia. In particular, the use of bank cards and e-wallets issued to often fake IDs are suspected of involvement in a number of financial and other crimes within the country.