Russian Banks Told to Track Crypto-Related Transactions Amid Currency Restrictions – The Bank of Russia has advised commercial banks to pay more attention to their clients’ cryptocurrency transactions. In light of currency limits imposed by Western sanctions, the regulator compels financial institutions to monitor such activities.
The Central Bank of Russia (CBR) has warned banks that certain transactions, including those using cryptocurrencies, must be tracked. The banking regulator has sent a letter to financial institutions requesting that they uncover “anomalies in their clients’ transactional behavior,” such as variations in consumer and investment expenditure.
According to the letter, which was obtained by Forklog, bank personnel should be on the lookout for anomalous increases in transaction volume, withdrawals to foreign countries, and digital currency transactions.
The monitoring should also include actions by individuals and businesses to avoid foreign currency limits, as well as asset withdrawals by organizations registered in “unfriendly” nations.
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“In such circumstances, banks are recommended to perform an in-depth check on the client, consider refusing to execute the transaction and labeling it as suspicious,” according to the CBR’s notification, which was coordinated with Rosfinmonitoring, Russia’s top financial watchdog.
The Bank of Russia has been a strong opponent of current efforts in Russia to legalize the cryptocurrency market, citing hazards to the country’s financial stability and residents.
The monetary authority suggested a ban on a wide variety of operations, including cryptocurrency issuing, trading, and mining in January. It’s also urged banks to block cards and wallets being used to transact with cryptocurrency exchanges in the past.
The majority of other Russian organizations and regulators, led by the Ministry of Finance, have backed a different approach that emphasizes regulation under close supervision.
Minfin presented a new draft law “On Digital Currency” in February, with the goal of legalizing crypto activities through recognized Russian banks and filling other regulatory gaps left by the law “On Digital Financial Assets” passed last year.
Also Read: Bank of Russia Allows Sberbank to Issue Digital Financial Assets
Despite recent statements revealing Russia’s interest in using digital currencies to restore its access to global finance, which has been severely limited by sanctions imposed in response to its military invasion of Ukraine, the CBR’s latest attempt to restrict crypto-related transactions comes despite recent statements revealing Russia’s interest in using digital currencies to restore its access to global finances, which has been severely limited by sanctions imposed in response to its military invasion of Ukraine.
Western partners have taken steps to prevent Moscow from evading the sanctions by using digital assets.