HomeCryptoData center operators have ‘no problem’ with new Russian crypto crackdown

Data center operators have ‘no problem’ with new Russian crypto crackdown

BitRiver, the largest cryptocurrency mining colocation services provider in Russia, is unlikely to be affected by a new crypto crackdown from the Bank of Russia, according to the firm’s CEO.

On Sept. 15, the Russian central financial institution introduced that the authority has began working with native banks as a way to decelerate funds to cryptocurrency exchanges.

Sergey Shvetsov, the primary deputy governor on the Bank of Russia, reportedly mentioned that the regulator is now contemplating amending the regulation to “more clearly prohibit the use of cryptocurrency” and introduce extra administrative and prison liabilities.

While Shvetsov didn’t make clear on what sort of crypto transactions precisely could be restricted as a part of the new regulatory crackdown, the official famous that the financial institution needs to halt funds to crypto exchanges as a way to shield prospects from “emotional” purchases of crypto.

BitRiver founder and CEO Igor Runets advised Cointelegraph that new restrictions deliberate by Russia’s central financial institution will unlikely have an effect on any of its purchasers because the agency doesn’t function a crypto mining facility however fairly supplies information facilities for international corporations.

“We don’t send crypto to exchanges, we have none of our own equipment and this bank’s move will not affect our clients because they operate in foreign jurisdictions,” Runets famous.

According to Runets, BitRiver has been lengthy anticipating robust crypto insurance policies from the Russian authorities, recommending its Russian purchasers to make use of BitRiver’s crypto information facilities by establishing a international firm. “Now we have no problem,” Runets mentioned.

“From time to time we hear that clients want to make a company in Russia so that it is more convenient to deliver equipment from abroad. But even for them, the Bank of Russia doesn’t really bother, since the cryptocurrency doesn’t enter the account of a Russian company,” he added.

Related: Russian Duma needs to control crypto mining as enterprise

The Bank of Russia’s new anti-crypto measures come months after the nation adopted its main crypto regulation, “On Digital Financial Assets” in January. 

According to Nikita Soshnikov, a former senior lawyer at Deloitte CIS, the crackdown by the central financial institution is a part of a transfer to juxtapose non-public cryptocurrencies with the digital ruble, the nation’s central financial institution digital forex (CBDC) undertaking. On Monday, the Bank of Russia formally confirmed plans to launch a CBDC earlier than 2030 as one of many nation’s key digitization initiatives.

“I expect new official documents and legislative proposals where ‘allowed’ operations with a digital ruble will be opposed to ‘illegal’ crypto transactions,” Soshnikov mentioned.