Bank of Russia to ‘slow down’ payments to crypto exchanges and curb Russians’ impulse investments – Bitcoin News
The Central Bank of Russia is now working with commercial banks to delay payments made to digital asset exchanges. The move is aimed at limiting “emotional” cryptocurrency purchases made by “unqualified” Russian investors, a CBR official has revealed. This move will likely affect peer-to-peer and over-the-counter trading platforms.
Central Bank of Russia skeptical of cryptocurrency investments
The Bank of Russia remains skeptical about acquiring cryptocurrencies and will not support increasing access to crypto markets for Russian investors, most of whom are not accredited, the deputy said this week. -President of the bank, Sergei Shvetsov, quoted by the Prime news agency. Speaking at the “Banks of Russia – XXI Century” international banking forum, the senior official explained:
When it comes to buying [cryptocurrency] for investment purposes, we are skeptical of this idea. We believe that it is different from traditional assets, that it is very risky and that it shows signs of a pyramid scheme.
Shvetsov reiterated the central bank’s “clear position” that the only means of payment in the Russian Federation is “ruble in all its forms and not some kind of monetary or foreign currency substitute”. The financial authority is preparing to launch a prototype digital ruble by the end of the year, and it hopes the CBDC will help curb the use of cryptocurrencies in Russia.
At the event in Sochi, Shvetsov said the Bank of Russia is cooperating with commercial banks to delay payments sent to cryptocurrency exchanges. CBR recently recommended that banks block cards and wallets used to transact with crypto exchangers. The aim is to limit the chances of impulse purchases of crypto assets, noted the chief administrator of the regulator. Quoted by RIA Novosti, the banker said:
We are starting to work with the banking system to slow down payments for the benefit of exchange bureaus and cryptocurrency exchanges, closing opportunities for emotional purchases of these kinds of products.
Sergei Shvetsov noted that despite some governments taking steps to legalize cryptocurrencies, concerns remain about the complete collapse of this type of monetary system. “There is a high probability that, as a high-tech financial pyramid, this could all drop to zero,” he warned, adding that there could be hundreds of reasons why this could happen. . “From our point of view, it is a vast minefield,” said the head of the central bank.
CBR restrictions to violate Russian rights, legal expert says
Shvetsov’s comments raised other concerns, however – those of those involved in the Russian crypto space. Just talking about imposing restrictions sends an extremely negative signal and the consequences could be catastrophic for the country’s crypto market, Nikita Zuborev, senior analyst at popular exchange aggregator Bestchange.ru, told Forklog. . He also warned:
The most affected segment will be over-the-counter trading with registration in the Russian Federation – exchange bureaus and users of P2P platforms. Miners will also be forced to look for workarounds to keep the farms in operation, selling the mined coins for rubles will be problematic.
According to Andrey Tugarin, Managing Partner at GMT Legal, limiting good faith transactions for the purchase of cryptocurrencies would be illegal. “The current law on digital financial assets allows every citizen of the Russian Federation to own digital currency, which is bitcoin, buy or sell it and use it as an investment. And this right applies regardless of whether the buyer is an accredited investor or not, ”Tugarin stressed.
The good news right now is that over the past few weeks, Exmo, a popular cryptocurrency exchange in the region, has not seen any decline in the volume of deposits made by Russian users. In fact, Russian transactions on the platform actually increased during the recent market correction, revealed Maria Stankevich, Director of Business Development at Exmo.
Do you think the Bank of Russia will succeed in curbing Russian investments in cryptocurrency? Share your thoughts on the subject in the comments section below.
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