Data center operators have ‘no problem’ with new Russian crypto crackdown

BitRiver, the biggest cryptocurrency mining colocation companies supplier in Russia, is unlikely to be affected by a new crypto crackdown from the Bank of Russia, in keeping with the agency’s CEO.

On Wednesday, the Russian central financial institution introduced that the authority has began working with native banks with the intention to decelerate funds to cryptocurrency exchanges.

Sergey Shvetsov, the primary deputy governor on the Bank of Russia, reportedly said that the regulator is now contemplating amending the regulation to “extra clearly prohibit the usage of cryptocurrency” and introduce further administrative and prison liabilities.

While Shvetsov didn’t make clear what sort of crypto transactions precisely can be restricted as a part of the new regulatory crackdown, the official famous that the financial institution desires to halt funds to crypto exchanges with the intention to defend clients from “emotional” purchases of crypto.

BitRiver founder and CEO Igor Runets advised Cointelegraph that new restrictions deliberate by Russia’s central financial institution will unlikely have an effect on any of its purchasers, because the agency doesn’t function a crypto mining facility however quite offers information facilities for international firms.

“We don’t ship crypto to exchanges; we have none of our personal gear, and this financial institution’s transfer is not going to have an effect on our purchasers as a result of they function in international jurisdictions,” Runets famous.

According to Runets, BitRiver has been lengthy anticipating powerful crypto insurance policies from the Russian authorities, recommending its Russian purchasers to make use of BitRiver’s crypto information facilities by organising a international firm. “Now we have no drawback,” Runets mentioned.

“From time to time, we hear that purchasers need to make an organization in Russia in order that it’s extra handy to ship gear from overseas. But even for them, the Bank of Russia doesn’t actually trouble because the cryptocurrency doesn’t enter the account of a Russian firm,” he added.

Related: Russian Duma desires to manage crypto mining as enterprise

The Bank of Russia’s new anti-crypto measures come months after the nation adopted its main crypto regulation, “On Digital Financial Assets,” in January. 

According to Nikita Soshnikov, a former senior lawyer at Deloitte CIS, the crackdown by the central financial institution is a part of a transfer to juxtapose non-public cryptocurrencies with the digital ruble, the nation’s central financial institution digital forex mission. On Monday, the Bank of Russia formally confirmed plans to launch a CBDC earlier than 2030 as one of many nation’s key digitization initiatives.

“I anticipate new official paperwork and legislative proposals, the place ‘allowed’ operations with a digital ruble, will likely be against ‘unlawful’ crypto transactions,” Soshnikov mentioned.