Bank of Russia to Monitor Banks’ Dealings With Crypto Exchangers – Finance Bitcoin News

Bank of Russia to Monitor Banks’ Dealings With Crypto Exchangers


The Central Bank of Russia has started to examine the operations of Russian banks with cryptocurrency exchangers, according to local media. Transactions between individuals through these platforms are of particular interest as the regulator believes these carry risks of financial losses and fraud.

Central Bank Asks Russian Banks for Details on Crypto-Related Transactions

In late December, the Central Bank of Russia (CBR) sent commercial banks a new reporting form for transactions, seeking information about money transfers related to crypto exchange websites. These are mostly payments between private individuals, including transactions with cards and wallets registered in the name of dummy persons.

The regulator is asking the banking institutions to provide details about their interactions with crypto exchangers such as btc-obmennik.com, cleanbtc.ru, 100bitcoins.com, ultrachange.biz, 1wn.kz, cryptex24.com, openchange.cash, xchange.cash, vexel.com, and betatransfer.org, a new report by the Kommersant reveals.

The leading business daily quotes sources from the crypto industry claiming that over 400 crypto exchangers now offer services to Russian residents on the internet. Their estimates suggest that the monthly volume of the over-the-counter crypto market in Russia and neighboring countries is around $1.3 billion. The Russian Federation accounts for about half of the total.

Ledger

The crypto exchangers often list on their websites the names and logos of established financial institutions and payment providers such as Sberbank, VTB, Tinkoff Bank, Western Union, Webmoney, and Koronapay as their partners. Two of them, Webmoney and Koronapay, have already denied any cooperation with the coin trading platforms.

Crypto Exchangers Operate Without Registration, CBR Says

Bank of Russia points out that the exchangers provide services for the purchase and sale of cryptocurrencies without registering their activities or bearing any financial obligations to their customers. At the same time, the transactions are being conducted anonymously, without studying their purpose and the sources of the funds to assess risks such as money laundering, for example.

The monetary authority, known for its hardline stance on cryptocurrencies, also noted that the trading sites often accept payments not to their actual accounts but to bank cards and digital wallets issued to private individuals. This “creates the risk of citizens losing money and getting involved in fraudulent schemes,” the regulator warned.

In a recent interview with the government-issued newspaper Rossiyskaya Gazeta, the head of the Investigative Committee of the Russian Federation Alexander Bastrykin remarked that the status of online platforms providing options to buy and sell crypto anonymously is yet to be determined. He also called for introducing mandatory identification for all cryptocurrency users in Russia.

Authorities have been going after crypto exchangers for the past few years. 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. Discussions on the future of crypto exchangers should end in 2022, Deputy Director of the Rosfinmonitoring watchdog Herman Neglyad was quoted as saying last month.

Tags in this story

accounts, Bank of Russia, banks, cards, CBR, Central Bank, commercial banks, Crypto, crypto exchangers, Cryptocurrencies, Cryptocurrency, data, exchange websites, Information, Payments, Russia, russian, transactions, transfers, Wallets

Do you expect Russia to regulate or crack down on online crypto exchangers? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More Popular News

In Case You Missed It



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

You have not selected any currency to display

Pin It on Pinterest

Ico-Investor
Fiverr
Ico-Investor
Bank of Russia to Monitor Banks’ Dealings With Crypto Exchangers
Ledger
Changelly
XRP Lending Goes Institutional—New Platform Targets US Public Companies
XRP’s Institutional Access Expands With Hashkey Exchange Listing
Big Short’s Michael Burry Bets on Lipstick to Combat Recession
Crypto’s $10T Surge Begins—Mainstream Stablecoins Trigger Escape Velocity
Bitwise Taps 100K Advisors to Push Active Crypto Strategies
Citi Unveils Tokenization Initiative With SDX at Zurich Forum
Blockfi
Ledger
Traders shift strategies amid tariff turmoil
Ethereum's 50% rally setup vs. Bitcoin sparks altseason hopes
Performance Art Duo Operator 'Make Movement Collectible' With NFTs
BitMEX discovers cybersecurity lapses in North Korea hacker group
Bitcoin price might hit $250K in 2025 — Here is how
Traders shift strategies amid tariff turmoil
Ethereum's 50% rally setup vs. Bitcoin sparks altseason hopes
Performance Art Duo Operator 'Make Movement Collectible' With NFTs
BitMEX discovers cybersecurity lapses in North Korea hacker group