Bank of Russia adds cryptocurrency-related projects to its blacklist

Several projects related to investing in and trading cryptocurrencies were included in the Bank of Russia’s list of organisations showing signs of illicit activity in the financial market.

The central bank’s list includes 1,820 suspicious companies identified in 2020-2021. As noted by first deputy chairman of the Bank of Russia Sergei Shvetsov, it covers financial pyramids, illegal lending institutions and pseudo-brokers until they effectively cease operations.

The Bank of Russia says lawsuits related to its business reputation may be brought, but it is prepared for them. Companies on the blacklist will be able to appeal their inclusion, Shvetsov added.

He also said that crypto-related projects would not be included in the list, calling them “a separate story”. Nevertheless, the list contains several such companies.

Among the organisations that, in the Bank’s view, show signs of financial pyramids were MMM bitcoin, Crypto Security, Crypto Inс, Crypto-Max, CryptoNode, Imperial Crypto Market, Exchange-coindesk, Secret Сrypto Deals.

The regulator also included in the list companies that show signs of being an “illegal professional participant in the securities market”. Among them are Tradeallcrypto, Grandeur Bitcoin Project, Crypton Broker, Cryptobase Inc, Cryptobull, CryptoKS, Cryptonode and several others.

The Bank identifies suspicious organisations using a “special monitoring system, as well as complaints from citizens and organisations”.

Legislation does not provide for payments by the Bank to those harmed by the activities of such companies, the regulator noted.

In 2020, the Bank identified 222 financial pyramids. 16% of online pyramids offered investments in cryptocurrencies.

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