Bank of Russia Issues New Cryptocurrency Guidelines for Banks

The Bank of Russia has stated the need to minimize the involvement of financial institutions in activities related to the circulation of digital currencies. 

In particular, the advertising of services for the circulation of such instruments is deemed undesirable. 

Commercial banks are advised to identify transactions involving the purchase and sale of digital currencies using accounts registered to fictitious individuals. 

“For those conducting such transactions, banks may request additional information and documents, and also consider this information when assessing their risk level,” the regulator noted.  

Market operators of DFA are advised not to provide services for the issuance and circulation of tokens whose profitability depends on the value of digital currencies and similar indicators. 

“In 2021, we already recommended that exchanges not allow financial instruments whose profitability depends on the value of digital currencies to be traded, and financial intermediaries to refrain from offering such instruments to their clients — unqualified investors,” the Bank of Russia reminded.

The new requirements do not apply to CBDCs and digital rights issued in accordance with Russian law.

In February, the regulator revoked the license of QIWI Bank. Among the complaints was the conduct of high-risk operations, including with bitcoin exchanges.

Earlier, ForkLog reported that the FATF downgraded Russia’s rating due to inadequate regulation of the cryptocurrency market.