Bank of Russia Investigates Crypto Exchange Transactions by Russian Banks
The Bank of Russia has begun closely examining transactions by Russian banks that are connected to crypto exchanges, according to a report by Kommersant. The focus is particularly on payments between individuals, as well as activities involving casinos and forex dealers. The Central Bank believes that such payments can involve citizens in fraudulent schemes and create risks of financial loss.
At the end of 2021, the Central Bank reportedly sent requests to banks regarding their cooperation with crypto exchanges, specifically concerning peer-to-peer (P2P) payments between individuals, including transfers to accounts of third parties. Depending on the bank, the requests mentioned the following exchanges: btc-obmennik.com, cleanbtc.ru, 100bitcoins.com, ultrachange.biz, 1wn.kz, cryptex24.com/ru/, openchange.cash, xchange.cash, vexel.com, and betatransfer.org.
Among the partners listed by these crypto exchanges are Sberbank, VTB, Tinkoff, Western Union, WebMoney, and Zolotaya Korona. Of these, only WebMoney and Zolotaya Korona provided comments to the publication, denying any cooperation with the exchanges. The other organizations did not respond to the inquiry.
According to the company “Legal and Financial Creative Solutions” (LFCS), crypto exchanges are not prohibited by law. However, financial experts note that for now, it is easier for credit institutions to avoid such partnerships, as they attract additional scrutiny from the Central Bank.
“The crypto exchange business will become more transparent if banks start working with it, and this will happen when there is clear industry regulation and the Central Bank softens its stance on crypto businesses,” said Alexander Guskov, a partner at Guskov & Associates.
Bankers reported that they had not previously received such requests from the regulator. According to participants in the crypto market, Russian citizens currently have access to services from 400–450 Russian and foreign crypto exchanges. The volume of the over-the-counter cryptocurrency market in Russia and neighboring countries is about $1.3 billion per month, with Russia accounting for about half of that amount.