BitRiver, the largest cryptocurrency mining service provider in Russia, is unlikely to be affected by a new crypto crackdown by the Russian central bank, according to the company’s CEO.
On Wednesday, Russia’s central bank announced that authorities had started working with local banks to slow down payments to cryptocurrency exchanges.
Sergey Shvetsov, First Deputy Governor of Russia’s Central Bank, said the regulator is currently considering amending the law to “more clearly ban the use of cryptocurrencies” and introduce administrative responsibilities.
Although Shvetsov has not clarified exactly what types of crypto transactions will be restricted under the new regulatory move, the official noted that the bank plans to stop payments on cryptocurrency exchanges in order to protect customers from “emotional” cryptocurrency purchases.
BitRiver founder and CEO Igor Runets told Cointelegraph that the new restrictions planned by the Russian central bank will not affect any of their customers as the company does not operate a mechanism.
“We don’t send crypto to exchanges; We don’t have our own equipment and this move by the bank will not affect our clients as they operate in offshore areas, ”remarked Runets.
According to Runets, BitRiver has long expected a tough crypto policy from the Russian government and recommends its Russian customers to take advantage of BitRiver’s crypto data centers by starting a foreign company. “We have no problems now,” said Runets.
“We hear from time to time that customers want to set up a company in Russia to facilitate the shipment of equipment from abroad. But even for them, the Central Bank of Russia does not mind because the cryptocurrency does not go into the account of a Russian company, ”he added.
Related: Russian Duma wants to regulate cryptocurrency mining as a company
The Russian central bank’s new anti-crypto measures come months after the country passed its key cryptocurrency law, “On Digital Financial Assets”, in January.
According to Nikita Soshnikov, a former senior attorney at Deloitte CIS, the central bank’s move is part of a move to combine private cryptocurrencies with digital rubles, the country’s digital currency project. On Monday, the Russian central bank officially confirmed its plan to launch a CBDC as one of the country’s most important digitization projects by 2030.
“I expect official documents and new legislative proposals in which ‘allowed’ activities with the digital ruble are directed against ‘illegal’ cryptocurrency transactions,” said Soshnikov.