Russia to slow down deposits to crypto exchanges to limit “emotional” purchases

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The Central Bank of Russia (CBR) is reportedly working with commercial banks to delay payments made to crypto exchanges.

At the event in Sochi, a CBR official explained that the goal of slowing down crypto exchange payments is to limit so-called emotional purchases made by unqualified investors, reports news.bitcoin.com. This move will likely affect peer-to-peer and over-the-counter trading platforms. According to CBR Vice President Sergei Shvetsov:

“We are starting to work with the banking system to slow down payments for the benefit of currency exchange bureaus and cryptocurrency exchanges, closing opportunities for emotional purchases of this type of product.”

The central bank move comes amid growing investor interest in Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE) and other cryptocurrencies. Although cryptocurrencies are becoming more widespread, CBR remains skeptical about investing in digital assets.

CBR considers crypto a risky investment

Last week, the first deputy governor of central banks, Sergei Shvetsov, said investing in crypto was risky and comparable to getting involved in a pyramid scheme.

When it comes to buying [cryptocurrency] for investment purposes, we are skeptical of this idea. We believe that it is different from traditional assets, that it is very risky and that it shows signs of a pyramid scheme, Shvetsov said.

In June, CBR director Elvira Nabiullina also warned that investing in crypto assets was the most dangerous investment strategy and called digital coins speculative assets.

The price is very volatile; the losses can be appalling. The Central Bank never gives advice, where to invest, but in this particular case here [one] certainly shouldn’t [invest], said Nabiullina.

Russia’s Position on Crypto Assets

This is not the first time that Russian authorities have discouraged crypto investments. In July of this year, the CBR also announced new regulations calling on exchanges not to offer crypto-related products to investors.

According to the CBR, crypto assets are risky due to their highly volatile nature, pricing issues, lack of transparency, limited liquidity and unclear regulations.

In August, Russian President Vladimir Putin also ordered the Bank of Russia, as well as the Ministry of Finance and the Ministry of Labor to prepare by November 15 their proposal for a procedure that would verify the ownership of digital assets.

The country’s financial watchdog Rosfinmonitoring has also ordered the creation of a new system to track and analyze the behavior of crypto investors, as well as to identify those who invest in crypto assets.

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