Russia May Suspend Bank Accounts Associated With Crypto-Assets

Russia May Suspend Bank Accounts Associated With Crypto-Assets

In May 2019, the Russian Prime Minister announced at the St. Petersburg International Legal Forum that digital assets are “not applicable” and that their popularity has “waned,” according to BeInCrypto Russia. Many attribute this to the fact that the government is not purposeful on blockchain technology and its supervisory territory.

This does not appear to be the situation since the country’s central bank has officially added “virtual assets” as a basis for suspending bank accounts. It is still unknown whether this will be the beginning of an extensive crackdown on cryptocurrency owners, but the situation is causing unease.

The recent news is from a fresh adjustment to the Anti-Money Laundering Regulations (AML) in the country. The fresh adjustment of the Central Bank of Russia categorically alludes to crypto assets on their basis for suspending accounts.

AML regulations in Russia have not been revised after 2012. Now the adjustment says that the buying and selling of virtual assets may be treated as a basis for suspending bank accounts. Changes have been expected for some time, and the legal scenario with cryptocurrencies in Russia is quite uncertain – for example, whether any bank accounts related to cryptocurrencies were suspended.

Russia’s Latest AML Regulations Inhibits Blockchain Adoption
The fresh adjustment to extant AML regulation is a shock to those who are following Russia’s policies, as the Russian Central Bank is switching to cryptocurrencies and now says that bank accounts related to virtual assets may be suspended.

By throwing light on the fresh AML regulations in Russia, the country’s central bank is opening the authority to suspend cryptocurrency associated bank accounts. Referring to the adjustment declared in Rule 375-P, such accounts may be classified as “suspicious transactions”. [RBC].

However, for instance, a big fragment of the blockchain industry is situated in Russia, state authorities seem to intend to deal with this sector. Meanwhile, this did not stop the exchanges from extending their services in Russia. Recently in the month, Binance declared that Russians can now purchase cryptocurrencies straight utilizing the Russian ruble.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.