Russian Central Bank Authorities are looking to “slow down” payments made to crypto exchanges to limit “emotional” purchases made by “unqualified” investors.
Russian central bank slows down payments to exchanges
In a move in keeping with global regulatory crackdowns on the crypto industry, the Central Bank of Russia is looking to cooperate with commercial banks to delay payments made to crypto exchanges, announced in a recent event in the southwestern city of Sochi. This announcement comes as general crypto investor interest in Russia rises.
This is a move that seeks to prevent the “emotional” purchases of cryptocurrencies via peer-to-peer and over-the-counter trading platforms. CBR First Deputy Governor Sergei Shvetsov believes that crypto differs from traditional assets, and has the signs of a pyramid scheme. The country’s financial monitoring company has also commissioned the creation of a new system to track and scrutinize crypto investor behavior.
Crypto is too Risky, says CBR
Earlier this year, the CBR implored stock exchanges not to offer crypto-related products to investors. The cryptocurrency was deemed to be very risky by the Central Bank, way back in 2019, as they felt that cryptocurrency could be used to launder money from criminal activities, finance terrorism and that conducting transactions posed a risk due to crypto’s volatile nature. Limited liquidity, a lack of transparency, and unclear regulations all contribute to the risk of using crypto assets. The Central Bank, however, intends to pilot its own digital currency in 2022.
Russia’s Stance on crypto over the years
Russia has taken aggressive moves against cryptocurrency in the recent past. The Binance domain was recently blocked in Russia, after Binance was allowing Russians to buy cryptocurrency with the Russian ruble, but was subsequently unblocked.
It also claimed in 2020 to be testing the prototype of AI software to reduce the anonymity inherent in cryptocurrency transactions. In the same year, the Russian Federation’s financial regulator proposed changes to criminal punishing undeclared digital wallets holding more than one million rubles.
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