Russia’s central bank has called on Russian banks and financial institutions to block credit cards and electronic transactions linked to digital currency exchanges. The government has referred to digital currency-related activities as the “underground economy.”
to the Report Russia’s central bank, Crypto News, has issued an official statement saying it should curb Internet-related businesses. The government has instructed commercial banks and e-payment companies to identify all e-accounts and wallets associated with “illegal business activities” such as “digital currency exchanges”.
The statement from the Central Bank of Russia listed digital currency exchanges, betting websites, pyramid schemes and Forex trading institutions as illegal businesses.
The government has said it has asked financial institutions to stop providing services to accounts linked to illegal economic activities and to block transactions involving these businesses.
Russia’s central bank has also issued guidelines that the government says could help banks distinguish transactions related to illegal economic activities from legal, transparent peer-to-peer transactions.
The statement from Russia’s central bank ended with a repetitive explanation that activities related to digital currencies, forex, betting and the like are “risky” and “fraudulent”.
Russian media have quoted Kod Durov as saying that the Russian central bank has taken steps to stop the digital currency market cycle in the country, despite the fact that there are no specific legal bans on trading digital currencies and operating in exchange offices.
Russia’s central bank is now under pressure from business supporters in its government over its digital currency policy. While the central bank has once again called for a total ban on digital currency-related activities, such as what happened in China, the Russian Ministry of Finance and several other government agencies have opposed the move.
The current stalemate has created passivity in the Russian legislature. Of course, legislative steps have been taken so far, including banning the use of digital currencies as a method of payment and taxing revenues from digital currency transactions.
Despite these restrictions, digital currency extraction activities in Russia continue to grow, with larger businesses seeking to offer tokens, and Russian banking and technology giant Sberbank, despite the central bank’s secrets to restricting the use of stable coins, It has launched a stable digital currency.