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Crypto firms are banned in Russia, clarifies Russian central bank

Cryptopolitan


TL;DR Breakdown

• Trusts and brokers cannot partner with crypto firms.
• The Central Bank will continue to accept centralized virtual currencies.

Banks in Russia have issued an alert for securities agencies in the country. This announcement hints that no broker should be involved with any crypto firms.

The petition was signed by the BCR vice-president, in which he asked the brokers not to use crypto. This measure is expanded to both the country’s crypto firms and foreign ones in Russia. Everything points to Russian regulations, with the Central Bank trying to create restrictions that affect cryptocurrencies.

Central Bank announcements on crypto firms

In the Sergei Shvetsov announcement, the Russian Central Bank vice president specified that all crypto companies are prohibited. This applies to companies with their crypto payments or speculating with the token. Even in the restrictions, he does not want to see a list of crypto derivatives or values in crypto funds.

The banking authority ordered trust brokers, administrators, and agents to avoid dealing with crypto firms. Failure to comply with the measure may cause these brokers to be affected by the sanctions ordered by Shvetsov.

Following these announcements, the Central Bank says that crypto is a highly volatile virtual currency and lacks transparency. However, these regulations may be motivated by actions taken by Central Banks in the UK, China, and Japan. The Russian Central Bank also suggests that the crypto market attracts many investment risks for companies and people with little experience.

Crypto firms are affected by the BCR move

The banking authority in Russia has limited crypto firms, although it will only happen with new investors. The Central Bank will not apply the measure for expert and certified investors in the country. However, these actions limit people from adopting crypto within Russia.

The regulations come after crypto firms direct their operations to stockbrokers in Europe, Asia, and the United States. This occurs because crypto companies want to be publicly listed and not with restrictions, as in Russia. However, plans have been affected by these new regulations that shut out Russian investors.

The central bank bans have not been taken in the best way among new investors. However, they have little to do since it is a measure in circulation. Investors in Russia must look for alternatives to continue using cryptocurrencies in the country.

But the Russian Bank indicated that the prohibitions would not be applying to leading cryptocurrencies and other legal tokens. Investors will buy their virtual rubles to make purchases online or use the portfolios as sources of savings. These major currencies do not enter the regulatory landscape because they comply with the country’s law and the central bank supports them.



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