Data center operators “no problem” against Russia’s new cryptocurrency crackdown

According to the company’s CEO, BitRiver is Russia’s largest cryptocurrency mining custody service provider, and it is unlikely to be affected by the new cryptocurrency crackdown by Russian banks.

On Wednesday, the Central Bank of Russia announced that the authorities have begun to cooperate with local banks in order to Slow down payments to cryptocurrency exchanges.

According to reports, the first deputy governor of the Central Bank of Russia Sergey Shvetsov (Sergey Shvetsov) Said Regulators are now considering changing the law to “more clearly prohibit the use of cryptocurrency” and introducing additional administrative and criminal liability.

Although Shvetsov did not specify what kind of crypto transactions will be restricted as part of the new regulatory crackdown, the official pointed out that the bank wants to stop payments to crypto exchanges to protect customers from “emotional” purchases of crypto.

BitRiver founder and CEO Igor Runets told Cointelegraph that the new restrictions planned by the Russian Central Bank are unlikely to affect any of its customers because the company does not operate crypto mining facilities, but provides data centers for foreign companies.

“We do not send cryptocurrencies to exchanges; we do not have our own equipment, and this bank’s actions will not affect our customers because they conduct business in foreign jurisdictions,” Runets pointed out.

According to Runets, BitRiver has been expecting the Russian government to adopt a strict encryption policy, recommending that its Russian customers use BitRiver’s encrypted data center by setting up foreign companies. “Now we have no problems,” Runets said.

“We hear from time to time that customers want to set up a company in Russia to make it easier to ship equipment from abroad. But even for them, Russian banks will not really bother because the cryptocurrency does not enter the account of the Russian company,” he added .

related: The Russian Duma wants to regulate crypto mining as a business

The new anti-crypto measures of the Central Bank of Russia were introduced a few months later The country has passed major encryption laws, “On Digital Financial Assets”, January.

According to Nikita Soshnikov, a former senior attorney for Deloitte CIS, the central bank’s crackdown is part of a move to tie private cryptocurrencies with the digital ruble. National Central Bank Digital Currency Project. On Monday, the Central Bank of Russia officially announced comfirmed It is planned to launch CBDC before 2030 as one of the country’s key digital projects.

“I expect the new official documents and legislative proposals to’permit’ the use of digital rubles for operations will oppose’illegal’ encrypted transactions,” Soshnikov said.