The Bank of Russia wants to restrict cryptocurrency investments by banning card payments for crypto purchases.
There has been a growing demand for crypto investments in Russia over the past few years. The increased popularity of cryptocurrencies has attracted individuals from different countries to invest in them. But due to this increasing demand, regulators have been working on ways to restrict crypto trade and impose stricter regulations on ICOs.
To keep Russians from investing in cryptocurrencies, the Central Bank of Russia is examining several different options right now. According to a media source, one of the alternatives is to prohibit card payments to particular receivers, such as crypto exchanges. However, a recent meeting of the State Duma has shown that Moscow’s other government institutions do not support the authority’s robust approach.
According to the Russian version of Forbes magazine, which cited persons familiar with the topic, the Central Bank of Russia (CBR) has explored numerous options to restrict access to cryptocurrencies for domestic investors in negotiations with financial market players.
Andrey Mikhaylishin, the founder of a crypto startup examined in the regulators’ sandbox, says blocking card payments to crypto platforms is one possibility under discussion.
The central bank may attempt to compel banks to halt transactions involving particular Merchant Category Codes (MCCs), four-digit identifiers allocated to payment receivers based on the services they provide.
Well…The use of cryptocurrency has been on the rise. As a result, many countries are taking measures to prevent crypto-related crimes and maintain financial stability. The European Union has also imposed strict restrictions on crypto trade to protect consumers from potential financial losses.