The Central Bank of Russia (CBR) plans to gather information from commercial banks about some money transfers between individuals, including customers who trade in cryptocurrency. The measure likely affects online crypto exchangers that the regulator accuses of conducting illegal operations.
Central bank checks transactions between Russians when exchanging crypto
As part of an effort to prevent certain transactions it deems illegal, the Bank of Russia will collect additional data from financial institutions that process transfers between individuals. The move affects a number of platforms that use accounts registered in the names of dummy people, such as online bookmakers and websites that offer crypto trading services, local media announced.
The Russian business news portal RBC reported on Monday that the regulator had sent banks a new reporting form for transactions. According to the first report, the CBR intends to request information about money transfers between Russians, including the personal details of the senders and recipients of the funds.
In a press release quoted by Prime, the monetary authority later clarified that the measure does not impose complete control over individuals’ transactions, but rather aims to identify areas of risk related to the use of payment cards and wallets issued by cryptocurrency exchangers to fictitious individuals , Online casinos and unscrupulous participants in the financial market for settlements with Russian citizens. “
The Bank of Russia further emphasized that it wants to collect anonymized data from banking institutions that provide payment services to individuals only if their platforms could be used for illegal operations. It also insisted that it did not plan to introduce new reporting procedures for all transactions, stating that these are special cases where large amounts of money are transferred to the same recipient in multiple transactions within hours.
According to the CBR, such transactions are clearly not ordinary payments between individuals and small businesses. The central bank added that if certain criteria were met, it could request additional data from banking registers, but insisted that it would not request any information that could be used to identify individual customers.
Russian authorities are now argue Proposals for comprehensive regulation of cryptocurrencies, as many related activities, including trading and mining, fall outside the scope of the Digital Financial Assets Act, which came into force in January. In conversations in a Working group in the State Duma, the Bank of Russia reportedly has its long standing position against the free movement of Bitcoin and the like in the country and their use in Payments.
The monetary authority is also looking into options to prevent Russians from investing in crypto assets, including blocking Card payments to specific recipients such as coin trading platforms. This is despite the estimates in the recently published overview of financial stability for the second and third quarters of 2021 suggest that the annual volume of digital currency transactions made by Russian residents is around $ 5 billion.
Do you think the Russian Central Bank will only collect anonymized data for transactions between Russian crypto users? Do share your thoughts on the matter in the comments below.
Photo credits: Shutterstock, Pixabay, Wiki Commons
Source: Crypto News Austria