The Central Bank of Russia is currently working with commercial banks to delay payments to digital asset exchanges. A CBR official revealed that the move is aimed at restricting “emotional” cryptocurrency purchases by “unqualified” Russian investors. This move may affect peer-to-peer and over-the-counter trading platforms.
The Central Bank of Russia is skeptical of cryptocurrency investment
Bank of Russia Vice Chairman Sergey Shvetsov said this week that the Bank of Russia is still skeptical about the acquisition of cryptocurrencies and will not support increasing the opportunities for Russian investors to enter the crypto market. Most of the Russian investors have not obtained it. Recognized. At the “Bank of Russia-21st Century” International Banking Forum, the senior official elaborated:
When buying [cryptocurrency] For investment purposes, we are skeptical of this idea. We believe that it is different from traditional assets in that it has high risks and signs of a pyramid scheme.
Shvetsov reiterated the central bank’s “clear position” that the only payment method in the Russian Federation is “various forms of rubles, not some currency substitute or foreign currency”. The financial authorities are preparing to launch a digital ruble prototype before the end of the year, and hope that CBDC will help curb the use of cryptocurrencies in Russia.
At an event in Sochi, Shvetsov stated that the Bank of Russia is working with commercial banks to delay payments sent to cryptocurrency exchanges. CBR recently recommended that banks block cards and wallets used for transactions with cryptocurrency exchanges. The deputy head of the regulator stated that the goal is to limit opportunities for impulsive purchases of crypto assets. The banker stated in a quote from RIA Novosti:
We started working with the banking system so that it slowed down payments to support exchange offices and cryptocurrency exchanges, thereby avoiding the opportunity to emotionally purchase such products.
Sergei Shvetsov pointed out that although some governments have taken measures to legalize cryptocurrencies, people still worry that this type of currency system may completely collapse. “It is very possible that as a high-tech financial pyramid, all of this can be reduced to zero,” he warned, adding that there could be hundreds of reasons for this to happen. “In our view, this is a big minefield,” the central bank official emphasized.
Legal experts say CBR restrictions infringe on the rights of Russians
However, Shvetsov’s comments raised other concerns-those of those involved in the Russian cryptocurrency sector. Nikita Zuborev, a senior analyst at the popular exchange aggregator Bestchange.ru, told Forklog that the comments about the restrictions have sent extremely negative signals, and the consequences could have catastrophic consequences for the country’s crypto market. He also warned:
The most affected part will be the over-the-counter transactions registered in the Russian Federation-users of exchanges and P2P platforms. Miners will also be forced to find solutions to keep the farm running, and selling the mined coins in rubles will be problematic.
According to Andrey Tugarin, managing partner of GMT Legal, it is illegal to restrict the purchase of cryptocurrency in good faith. “The current “Digital Financial Assets Law” allows every citizen of the Russian Federation to own digital currency, namely Bitcoin, buy and sell it and use it as an investment. This right applies regardless of whether the buyer is a qualified investor or not,” figure Garin emphasized.
The good news now is that in the past few weeks, there has been no drop in Russian user deposits on Exmo, a popular cryptocurrency exchange in the region. Maria Stankevich, Exmo’s chief business development officer, revealed that, in fact, during the recent market adjustment period, Russian transactions on the platform actually increased.
Do you think that Russian banks will try to curb cryptocurrency investment in Russia? Share your thoughts on this topic in the comments section below.
Image Source: Shutterstock, Pixabay, Wikimedia Commons
Disclaimer: This article is for reference only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. The company or the author shall not bear direct or indirect responsibility for any damage or loss caused or claimed to be caused by using or relying on any content, goods or services mentioned in this article.