Russian Banks Now Have Power To Freeze Crypto-Related Accounts

Russian banks now have the power to decide whether to freeze or block crypto-related accounts thanks to the new Banking regulations that we discuss more in today’s crypto news.

The new banking regulations will allow the financial institutions to block or freeze the bank accounts of companies or individuals that they believe are associated with crypto activities. The rule change was imposed by the nation’s Central Bank which was outlined changes that it will make to the existing banking codes stating that if they find evidence of “circulation of digital currencies” the Russian banks now have the choice to step in and freeze the accounts.

The Central bank wrote that all crypto-related bank transactions are usually seen as regular one-way deals that involve huge amounts and can be flagged as suspicious transactions that are involved with money laundering or terrorist financing under the new rules. The rule will promulgate in October this year unless the government thinks that it is smart to intervene. The Central bank seems to have drafted the rule in October back in 2020 and received approval from the Ministry of Justice which seems to have signed off on the rule in December 2020.

The news came a few days after a new law that outlaws crypto as a means of payment came into force and was later followed by warnings from Anatoly Aksakov who is the head of the State Duma Committee on Financial Markets and the chief architect of the nation’s crypto policies. Aksakov commented about the harshest regulations and how much they are needed in Russia in the year ahead of us.

Speaking on the Russian regulation, In the latest turn of events, the Russian Ministry of Finance took a harsh stance towards crypto regulations. The crypto holders on not disclosing their digital assets that are worth more than 45 million rubles, at least twice in a period of three years, stand to face jail time of up to three years. This, however, is an amendment from the previous version. According to the latest update on BTC and crypto regulations, Russia’s Ministry of Finance looks ready to tighten the control on the people that deal with crypto assets, as Russia demands prison time for owning crypto.