Russia's Central Bank Tightens Crypto Regulations To Protect Local Investors

Russia tightens crypto activity (Coinidol)

JAKARTA – Russia's central bank, the Bank of Russia, does not play games in protecting its citizens from crypto investments. They tighten crypto activity and block crypto exchanges that are deemed suspicious. This is intended to protect Russian investors from the high volatility of cryptocurrencies.

According to Cointelegraph, the Russian Central Bank has begun working with local banks to stop payments to crypto exchanges to protect customers from potential losses if the crypto market “collapses to zero”. This was conveyed by the Deputy Governor of the Bank of Russia, Sergey Shvetsov to local media RIA Novosti on Wednesday.

Russia's central bank has asked local banks and credit companies to oversee various financial transactions carried out by individuals regarding crypto trading services.

On September 6, the Bank of Russia asked local banks to block customer accounts, digital wallets, and credit cards used for suspicious crypto transactions.

It aims to track and strengthen financial activities related to illegal business and money laundering. The Bank of Russia says most players in the "shadow economy" accept payments via bank cards or digital wallets with fictitious identities.

Russia's central bank doesn't want to embrace the crypto industry. This can be seen in the central bank's decision to call on local stock exchanges to avoid several foreign and local companies related to cryptocurrency services. They are also reported to have detained several major Russian banks from offering crypto trading.