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- The Russian Central Bank has enlarged its database of financial market participants accused of illegal activity
- The monetary authority has blacklisted a handful of crypto businesses among the new registrations
- The Russian Central Bank has always resisted the adoption of cryptocurrencies, issuing many investor cautions
The Russian Central Bank has enlarged its database of financial market participants accused of illegal activity. Several crypto firms, as well as entities with symptoms of Ponzi schemes, illicit credit organizations, and forex dealers, have been added to the list. The Central Bank of Russia (CBR) frequently detects unlawful financial services providers and informs Russian investors about fraudulent platforms as part of its financial sector surveillance. This week, the agency added 105 more organizations to its expanding list of entities with evidence of unlawful financial market activity.
The monetary authority has blacklisted a handful of crypto businesses among the new registrations. The majority of them have been labeled as financial pyramid scams.
This includes Bitflows, Bitkoresh, Bittrex-global, Crypto Invest Club, Idleminer, Miners Capital, and Money Miner. Another company, Bitford, has been labeled as an illegal professional securities market player. The bank reminded the public that most financial services firms must get a license from the central bank or register with the regulator in order to perform services in the Russian Federation. If this requirement is not satisfied, the organization is most likely operating unlawfully, and consumers may be deceived, the authority warns, adding that it is not obligated under present legislation to compensate victims of illegal platforms.
To The Mars, To The Moon, and TTM Group three organizations related to the marketing of the Finiko crypto pyramid were banned by the Bank of Russia last month. According to reliable estimates cited by Forklog, the Ponzi scam caused $4 billion in financial damages, making it one of the biggest in contemporary Russian history. According to a study published by Chainalysis, the pyramid received almost $1.5 billion in bitcoin in less than two years before collapsing this summer. Finiko was banned by CBR in February, and a batch of 15 cryptocurrency projects was added to the list in June, according to the crypto news site. To combat illicit financial operations, the Bank of Russia takes steps to ban such firms’ websites, as well as collaborating with law enforcement and other authorized agencies, as well as international regulators, to implement further measures, the authority stated.
The Russian Central Bank has always resisted the adoption of cryptocurrencies, issuing many investor cautions. Sergei Shvetsov, the bank’s Deputy Chairman, warned last week that the bank would not support expanding access to crypto markets, claiming that bitcoin is extremely hazardous and shows symptoms of a pyramid scheme. Earlier this month, the CBR suggested that banks restrict cards and wallets used to deal with crypto exchanges, while in July, the regulator encouraged Russian stock exchanges to avoid trading crypto assets.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
