Russia’s central bank recently expanded its database of financial market players suspected of illegal activity. A number of crypto companies have been added to the list of companies carrying the symptoms of the Ponzi scheme, as well as illegal credit institutions and forex dealers.
Russia’s central bank blacklists crypto platforms
As part of financial sector monitoring, the Central Bank of Russia (CBR) regularly identifies illegal financial service providers and warns Russian investors about fraudulent platforms. This week, the regulator added 105 more companies to its growing business list with “signs of illegal activity in the financial markets.”
Among the new entries, the monetary authority has blacklisted several crypto companies. Most of them have been classified as similar to the financial pyramid scheme. Bitflow, Bitcoin, Bitrex-Global, Crypto Invest Club, Idliminer, Miners Capital and Money Minor fall into this category. Another entity, Bitford, has been designated as an “illegal professional participant in the securities market.”
The bank reminds the public that in order to provide most financial services in the Russian Federation, providers must obtain a license from the central bank or register with a regulator. “If this condition is not met, then, presumably, the organization operates illegally and consumers may be deceived,” the authority said, adding that victims of illegal platforms are not obligated by current law to pay compensation.
Last month, the Bank of Russia blacklisted three companies involved in the promotion of the Finico crypto pyramid – To the Mars, To the Moon and TTM Group. According to independent estimates quoted by Forklog, the financial loss for the largest ponzi scheme in the history of modern Russia is 4 billion. The pyramid received $ 1.5 billion worth of bitcoin in less than two years before it collapsed this summer, according to a report from ChinaLaisys.
As noted in the crypto news outlet, CBR blacklisted Finico in February and added a batch of 15 cryptocurrency projects. “In order to curb illegal financial activities, the Bank of Russia has taken steps to block the websites of such national bodies and has contacted law enforcement and other authorized bodies, foreign regulators to take other measures,” the authority explained.
Russia’s central bank has consistently opposed the adoption of cryptocurrencies, issuing multiple warnings to investors. Last week, its deputy chairman Sergei Svetlana said the bank would not support increasing access to the crypto market, insisting that the cryptocurrency was “extremely risky and has signs of a pyramid scheme.” Earlier in September, regulators recommended that banks block cards and wallets used for transactions with crypto exchangers, and in July, the CBR advised the Russian stock exchange to avoid crypto instruments.
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