Previously the Russian central bank had tightened its supervision across the country particularly with regard to major players in the Russian financial sector over whom the bank had doubts of being involved in illicit activities. Within the strict supervision, Central Bank of Russia has included and enlisted doubtful crypto trading and investment platforms, forex dealers and unregistered credit organizations.
A public awareness campaign has been initiated by the Central Bank of Russia (CBR). Through this campaign CBR has been identifying service providers from the financial sector which are and can be involved in illegal activities. According to RCB there have been many malicious actors within the local financial sector whose activities are doubtful and may be illicit. Thereafter, official warnings have been issued by RCB for the public notice identifying further suspicious financial service providers.
This week also, a fresh list, containing suspicious and doubtful financial service providers, has been published by RCB. The list contains the names of additional 150 platforms which, according to RCB’s assumption, could be fraudsters. Interestingly, within this list, an inclusion has been made in which crypto trading platforms too have been added. RCB is of the view that the crypto trading and investment platforms named in the list, could be part of crypto fraud. There is a possibility which cannot be ousted that the platforms might be running pyramid schemes. Resultantly, all of the crypto trading and investment platforms mentioned in the list have been “blacklisted”. Amongst these blacklisted entities some of them are classified as hosting “crypto fraud schemes”.
Some of very commonly known names amongst blacklisted are Bitflows, Miners Capital, crypto Invest Club, Bitkoresh, Money Miner, Bittrex-global, Idleminer etc. While one of these companies namely “Bitford” has been classified and treated as a totally illegal company involved in the securities’ fraud activities.
RCB further clarified to the general public that under the law every financial service provider is obligated to seek an operating license. For obtaining the required license, a service provider will need to resort to RCB which will issue the license. If any of the financial service provider fails to obtain such license, and continues operating, then the said platform will be treated “illegal”. In case consumers are defrauded by such a platform then RCB shall not be held responsible. In addition, if any financial loss, injury or harm is caused to the consumers by such illegal platforms, then only the consumer will be responsible. Under the law, RCB or any other authority of the Russian Federation will assist the consumer in seeking compensation from the illegal platform.
Previously, in the month of August, RCB had blacklisted only three cryptocurrency trading platforms were named in the list. However, this month, the list has been expanded to a great deal which also includes forex dealers and unregistered credit organizations as well.