Russia Could Prevent Crypto Buys by Hindering Debit, Credit Payments

Bank of Russia, Restrict, Crypto, Investments, Blocking, Card Payments,

To prevent people from investing in cryptocurrencies, the Central Bank of Russia is considering restricting the use of debit and credit cards at crypto exchanges, although the option is just one of several being discussed, Forbes reported.

Elvira Nabiullina, head of the central bank, said the Russian financial system should not be used in connection with cryptocurrency undertakings, according to the report.

“We advocate that the Russian financial infrastructure is not used for transactions with cryptocurrencies,” Nabiullina said, per the report. “It is quite possible to realize this.”

See also: Russian Central Bank Might Ban Crypto Investments

The central bank and financial market participants are kicking around several options for limiting investments in the crypto market, Andrey Mikhailishin, the founder of the Joys crypto project, told Forbes.

Blocking Russian card transfers using certain four-digit MCC codes, would be one way, according to the report. Banks assign the codes to payees when payments are made. Both crypto exchanges and exchanges have an MCC code, usually 6051. A regulator could order banks to deny payments to certain institutions, like crypto exchanges.

The restriction of cards is one of many options on the table for discussion, the report stated, citing an unnamed source.

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Russia’s Working Group on cryptocurrency regulation had its initial meeting in the State Duma under the chairmanship of Vice Speaker Alexei Gordeev, according to the report.

Central Bank First Deputy Chairman Olga Skorobogatova, who was at the meeting, told Forbes the bank isn’t developing another bill prohibiting cryptocurrencies. Regulators, do, however, consider the circulation unacceptable and plan to prohibit investments in them.

“A large number of Russians own the cryptocurrency,” the press service of the Ministry of Finance commented told Forbes. “At the same time, cryptocurrencies are volatile, unsupported and opaque for regulators. However, now their ban can create problems for millions of compatriots, since it will make illegal what they already own. In this regard, various options for regulation are currently being worked out. It is planned to develop a consolidated position on this issue in 2022.”