- Qiwi Bank’s license was revoked due to high-risk operations, specifically mentioning cryptocurrency exchanges.
- The closure of the payment system will not affect legitimate market players.
- The regulator’s statement in this case does not pertain to the crypto industry.
On February 21, the Russian Central Bank revoked the license of Qiwi Bank for systematic violations of anti-money laundering laws and conducting high-risk operations.
According to the regulator, the bank facilitated transactions between individuals and the shadow business sector, including money transfers to cryptocurrency exchanges, illegal online casinos, and betting shops, while also seeking new ways to circumvent restrictions imposed by the Central Bank.
Additionally, the payment system is accused of opening wallets using individuals’ personal data without their knowledge.
Over the past 12 months, restrictive measures have been applied to Qiwi Bank five times, including a ban on certain operations.
Information on the identified violations has been sent to law enforcement agencies. The bank’s liquidation period will take at least a year.
Currently, Qiwi Bank has blocked deposits and withdrawals from wallets.
According to the Central Bank’s preliminary assessment, the bank has sufficient funds to return to clients during the forced liquidation or bankruptcy.
Legal Commentary
According to Andrey Tugarin, founder of the legal company GMT Legal, the mention of cryptocurrency exchanges in the Qiwi Bank case is indirect and does not pose consequences for legitimate participants in this market segment.
He noted that the only official document in Russia where the term “cryptocurrency exchange” appears is the Central Bank’s methodological recommendations from September 2021.
These recommendations list various purposes for which banks are used by unscrupulous participants, including money laundering, illegal business activities, financial pyramids, illegal online casinos, and operations in cryptocurrency exchanges. The quote in the regulator’s statement about the license revocation is taken from there.
“In other words, cryptocurrency exchanges themselves are not recognized in the Qiwi Bank case as something illegal or contrary to the law. However, their use by unscrupulous participants through banks is a reason for increased attention. The subject is considered important and primary in this case,” Tugarin explained in a comment to ForkLog.
The lawyer believes that due to Qiwi Bank’s “leniency,” it was used for various illegal schemes on a fairly large scale.
“I don’t think the departure of such a player will be a significant loss for the legitimate crypto market,” he added.
Tugarin believes that the current decision of the regulator is not directly related to the exchange industry in Russia.
In September 2021, the Russian Central Bank announced plans to develop a mechanism for blocking bank payments to cryptocurrency exchanges and exchangers. The regulator also recommended blocking cards and accounts for transactions with bitcoin exchanges.
At that time, central bank representatives explained that they do not protect such investments, and the storage of digital currencies is associated with a number of risks.
Specifically for ForkLog, the lawyer clarified the legality of blocking bank accounts for cryptocurrency transactions.
In January 2022, the Central Bank requested information from Russian banks on operations with bitcoin exchanges.