The Reserve Bank of Russia is currently examining various ways to prevent Russians from investing in cryptocurrency. One the choices on the table is to obstruct card payments to specific recipients such as crypto exchanges, a media report has unveiled. A current conference at the State Duma has suggested, nevertheless, that the authority’s hardline stance is not backed by other government institutions in Moscow.
Russia’s Central Bank Thinks about Systems to Limitation Crypto Investments
In talks with monetary market participants, the Central Bank of Russia (CBR) has been going over several techniques to restricting access to cryptocurrencies for domestic investors, the Russian edition of Forbes magazine has exposed, pricing estimate sources acquainted with the matter. According to Andrey Mikhaylishin, creator of a crypto project tested in the regulator’s sandbox, one of the options under consideration is to obstruct card payments to crypto platforms.
The monetary authority might try to require banks to stop deals with specific Merchant Classification Codes (MCC), four-digit numbers assigned to the recipients of payments depending upon the services they use. The code utilized for digital possession exchanges is 6051, the report notes. Mikhaylishin discovered that the concept had been gone over from a central bank staff member and the publication had the ability to validate the info from its own source near to the CBR.
While Bank of Russia recommended business banks obstruct cards and wallet accounts used by suspicious entities, among which it listed crypto exchange provider, the institution has yet to release an advisory report detailing its detailed position on cryptocurrencies. The report must be examined by a working group set up at the State Duma which is now considering regulations for crypto-related activities that remain outside the scope of the law “On Digital Financial Assets.” This law went into force at the beginning of the year.
The group held its first conference at the lower home of Russia’s parliament on Tuesday. Throughout the discussions, Deputy Governor Olga Skorobogatova made it clear the regulator was not drafting a law that would prohibit cryptocurrencies but at the exact same time, she emphasized the CBR’s firm opposition to their circulation in the country. The central bank strategies to prohibit crypto financial investments, Skorobogatova said, according to the sources estimated by Forbes– an employee of the authority and another authorities, who were present at the meeting.
Bank of Russia Alone in Its Conservative Technique to Cryptocurrency Regulation
The two sources also shared that Bank of Russia’s hardline position was not fully supported by the other participants. Deputy director of Russia’s Federal Financial Keeping track of Service, Herman Neglyad, proposed allowing cryptocurrencies to circulate while enforcing strict controls over monetary flows between the crypto area and the conventional financial system. Deputy Finance Minister Alexey Moiseev recommended restricting crypto purchases, however only for non-qualified investors.
In his viewpoint, it’s now far too late to completely prohibit cryptocurrency, given that 10 million Russian citizens have already gotten one coin or another, as per the department’s own computations. According to the Russian Association of Cryptoeconomics, Expert System and Blockchain (Racib), 17.3 million people in Russia have crypto wallets and the real number might be even higher as the data does not cover traders who use VPNs.
The ministry’s press service commented to Forbes that banning cryptocurrencies now would create a great deal of issues for Russians, as such a move would make their holdings illegal. Price quotes estimated in Bank of Russia’s Financial Stability Summary for Q2 and Q3 of 2021 indicate that the yearly volume of digital currency deals made by Russian homeowners amounts to around $5 billion. And according to the head of the Financial Market Committee at the Duma, Anatoly Aksakov, Russians have invested 5 trillion rubles in crypto (over $67 billion).
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Lubomir Tassev Lubomir Tassev is a reporter from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, instead of what I do.” Besides crypto, blockchain and fintech, international politics and economics are 2 other sources of motivation.
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