Russians Banks Can Block Crypto-related Accounts

Last Modified:7 Feb 2021 18:18:21
Russians Banks Can Block Crypto-related Accounts

The central bank of the Russian Federation has recently announced that the banks of this country are now authorized to block any account that is related to cryptocurrency transactions.

This news comes out after some regulations have been set by the central bank of this country. As a result of these new laws and regulations, if and when banks recognize that the owner of an account is in anyway using the account for cryptocurrency transactions, then the bank has the power and authority to close the said account.

In this announcement, the central bank of the Russian Federation has stated that usually the money transfers that take place using bank accounts and are in some manner related to the crypto and Blockchain world, are done so in large amounts. Additionally, such transfers take place mostly just once.

Therefore, the central bank has defined such transactions that mostly take place only once as “high volume non-recurring transfers.” They believe that such transactions are rather suspicious in nature and thus can raise some questions.

Given this nature of crypto-related bank transactions, they are now being considered among suspicious transactions related to money laundering and funding terrorism.

The new laws and regulations that have been set by Russia with regard to cryptocurrencies and Blockchain were set in place since late 2020. The draft of these regulatory measures was written only a little prior to the Judicial branch of the government had confirmed the laws. After the confirmation by the judicial body in charge, the regulations were set in place and took effect.

This is not the only news coming from Russia that shocked crypto enthusiasts. Before these regulations were put in place, the Russian government had officially announced that using cryptocurrencies in payments were banned.

Therefore, not only is it illegal to use cryptocurrencies to make payments in Russia, people cannot even use their bank accounts to make money transfers that are in any way related to cryptocurrencies.