The Russian central bank is currently exploring various ways to prevent Russians from investing in cryptocurrency. One of the options on the table is to block card payments to certain recipients like crypto exchanges, a media report reveals. However, a recent meeting in the State Duma showed that the agency’s tough stance is not supported by other government institutions in Moscow.
Russia’s central bank is considering mechanisms to limit crypto investments
In talks with financial market participants, the Russian Central Bank (CBR) has discussed several approaches to restrict access to cryptocurrencies for domestic investors, as the Russian edition of Forbes magazine revealed, citing sources familiar with the matter. According to Andrey Mikhaylishin, founder of a crypto project that has been tested in the regulator’s sandbox, one of the options being considered is to block card payments to crypto platforms.
The monetary authority can try to oblige banks to carry out transactions with certain merchant category codes (Customer Center), four-digit numbers assigned to payees depending on the services offered. The code used to exchange digital assets is 6051, the report said. Mikhaylishin learned that the idea had been discussed by a central bank official and the release was able to confirm the information from its own source close to the CBR.
While the Bank of Russia recommended Commercial banks suspend cards and wallet accounts used by suspicious companies that include crypto exchange service providers, the institute has yet to publish an advisory report setting out its comprehensive position on cryptocurrencies. The report should be from a. to be checked Working group Established in the State Duma, which is now considering rules on crypto-related activities that remain outside the scope of the “On Digital Financial Assets” Act. This law came into force at the beginning of the year.
The group held its first session in the lower house of the Russian parliament on Tuesday. During the talks, Deputy Governor Olga Skorobogatova made it clear that the regulatory authority was not drafting a law to ban cryptocurrencies, but at the same time emphasized the strong opposition of the CBR to their spread in the country. The central bank plans to ban crypto investments, Skorobogatova said, according to the sources cited by Forbes – a staff member of the agency and another official who attended the meeting.
Bank of Russia alone in its conservative approach to cryptocurrency regulation
The two sources also shared that the Bank of Russia’s tough position was not fully supported by the other participants. The deputy director of Russia’s Federal Financial Supervision Service, Herman Neglyad, proposed allowing cryptocurrencies to circulate while maintaining strict controls over financial flows between the crypto space and the traditional financial system. Deputy Treasury Secretary Alexey Moiseev suggested limiting crypto purchases, but only for unskilled investors.
In his opinion, it is now too late to completely ban cryptocurrencies, as 10 million Russian citizens have already purchased a coin or another, according to the department’s own calculations. According to the Russian Association for Cryptoeconomics, Artificial Intelligence and Blockchain (Racib) 17.3 million people in Russia have crypto wallets and the real number could be even higher as the data doesn’t cover merchants who use VPNs.
The ministry’s press service commented to Forbes that banning cryptocurrencies would cause many problems for Russians, as such a move would make their holdings illegal. Estimates quoted in the Bank of Russia’s financial stability chart for the second and third quarters of 2021 show that the annual volume of digital currency transactions made by Russian residents is around $ 5 billion. And according to the head of the Duma financial market committee, Anatoly Aksakov, the Russians have invested 5 trillion rubles in crypto (over $ 67 billion).
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Source: Crypto News Austria