- The Central Bank of Russia (CBR) plans to collect information from commercial banks related to some money transfers between individuals, including customers who trade cryptocurrencies.
- The financial institution clarified that the measure will be focused on detecting areas of vulnerability linked to the use of payment cards and wallets that are issued to fictitious people by crypto exchanges and online casinos.
- This measure could harm crypto exchange portals since the banking institution considers that they carry out illegal operations.
The growth of digital assets over the last few years has been of interest to millions of people, including personalities, athletes, musicians and large firms such as Goldman Sanch.
In fact, more and more traditional banking is opening up to digital assets and blockchain technology, however Central Banks still do not feel comfortable with cryptocurrencies and many doubts about this type of digital money. Such is the case of Central Bank of Russia (CBR), which intends to collect data commercial banks, especially those linked to certain cash transfers between individuals, including those that carry out operations with crypto assets.
CBR will collect data from commercial banks
This deep scrutiny is part of the actions that the banking institution will carry out to eliminate those commercial activities that it considers to be illegal.
Likewise, the action of the Russian bank will include various platforms that use accounts registered in the name of fictitious people, such as online bookmakers and internet portals dedicated to offering crypto trading services.
The new measure is likely to harm online crypto exchange portals, since, from the point of view of the banking institution, they carry out illegal operations.
Bank sends new report form for transactions
The informative website RBC, indicated that the financial institution had issued a new request for reports of commercial activities to the banking entities.
According to what has been reported, the Central Bank of Russia wants, above all, to focus its efforts on citizens located in Russian territory, and to know what are the money transfers that they carry out between them, in addition to collecting the personal data of both the issuers as of the receivers.
However, in a later press release, the financial institution clarified that the measurea does not intend to maintain full supervision of people’s activities, rather It will be focused on “detecting areas of vulnerability” linked to the use of payment cards and wallets that are issued to fictitious people by crypto exchanges and online casinos.
Points to consider
The Russian Central Bank pointed out that it is only interested in collecting data anonymously from all those banking financial institutions, which have payment services to people, only when their respective services can be used to carry out illegal operations.
The institution indicated that it is not interested in instituting new reporting procedures for all business activities.In addition to adding that the investigation will only focus on specific cases, especially those in which large amounts of money are moved in various transactions in a few hours and to the same account or person.
According to the Central Bank of Russia, these types of transactions are payments that are not common between private citizens and small companies.
The financial institution mentioned that, whenever it comes across transactions that meet certain criteria, it could be within its right to request extra information from the banks’ records, however, he was quite emphatic in the fact that it will not request data that can be used to identify a particular customer.
In this regard, the Russian authorities are discussing various measures that allow efficient regulation of digital assets, due to the fact that a good number of activities related to them, such as commerce and miners, are currently outside the law. “On digital financial assets” that began to be exercised last January.
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