HomeNewsCentral Bank of Russia slowing deposits to crypto exchanges

Central Bank of Russia slowing deposits to crypto exchanges

While crypto is gaining presence and acceptance throughout the world, not all governments are pleased with it. In fact, many of them are devising new ways to detract users using crypto. For that, the Central Bank of Russia (CBR) has devised a new method limiting crypto usage.

During an event in the Russian town Sochi, a CBR official stated that the bank is working with commercial banks to delay payments to crypto exchanges. Explaining the objective behind the move, he said that this is to limit the so-called ‘emotional’ purchases. On the subject of its exposure, the move will affect peer-to-peer and over-the-counter trading platforms.

On a broader subject, CBR’s Deputy Chairman Sergei Shvetsov said:

“We are starting to work with the banking system so that it slows down payments in favour of exchange offices and cryptocurrency exchanges, fencing off opportunities for emotional purchases of this kind of products.”

Although cryptocurrencies like Bitcoin, Ethereum, and DOGE are trending in the country, The Central Bank of Russia remains sceptical about investing in crypto.

Moreover, the governor had stated previously that investing in crypto is risky. Also, he added that investment in crypto is equivalent to investing in a pyramid scheme. In his words:

“When it comes to buying [cryptocurrency] for investment purposes, we are sceptical about this idea. We believe it’s different from traditional assets, it’s highly risky and has signs of a pyramid scheme.”

The scenario of the crypto industry in Russia is varied. While the Russian crypto community is planning ways to attract investors, lawmakers are keen on the regulation of the industry. Also, a Russian state committee is planning on the recognition of the crypto mining industry.

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