The biggest crypto mining colocation services provider in Russia, BitRiver, is not likely to get affected by a new cryptocurrency crackdown initiated by the Bank of Russia, according to the company’s CEO.
On September 15, the Russian central bank said that the regulator has begun working with the local banks to slow down payments to the crypto exchanges. The first deputy governor at the Bank of Russia, Sergey Shvetsov, allegedly said that the watchdog now wants to amend the law to “more clearly prohibit the use of cryptocurrency”.it also wants to introduce more administrative and criminal liabilities.
As the government works to introduce new laws, the nation’s biggest data center operators are not worried. Although Shvetsov never clarified what type of crypto transactions would be restricted in the new regulatory crackdown, the top executive mentioned that the bank aims to stop payments to cryptocurrency exchanges to protect users from ‘emotional’ purchases of cryptocurrency and digital assets.
Igor Runets, the BitRiver founder and CEO told reporters that the new regulations that are planned by Russia’s central bank will not affect any of its clients, as the company does not operate a cryptocurrency mining facility but instead offers data centers for foreign companies. Runets said:
“We don’t send crypto to exchanges; we have none of our equipment, and this bank’s move will not affect our clients because they operate in foreign jurisdictions.”
BitRiver has been expecting severe crypto policies created by the Russian government. The company recommended its Russian clients utilize BitRiver’s cryptocurrency data centers by creating a foreign firm. Runets added:
“Now we have no problem. From time to time, we hear that clients want to make a company in Russia so that it is more convenient to deliver equipment from abroad. But even for them, the Bank of Russia doesn’t really bother since the cryptocurrency doesn’t enter the account of a Russian company.”
The Bank of Russia’s new anti-cryptocurrency measures come several months after the country adopted its crypto law dubbed “On Digital Financial Assets,” in January. According to a former senior lawyer at Deloitte CIS, Nikita Soshnikov, this crackdown by Russia is part of a strategy aiming to juxtapose private cryptos with the digital ruble, the nation’s central bank digital currency project (CBDC).
On September 13, the Bank of Russia officially announced its plans to launch a CBDC before 2030 as one of the nation’s primary digitization projects. Soshnikov said:
“I expect new official documents and legislative proposals, were ‘allowed’ operations with a digital ruble, will be opposed to ‘illegal’ crypto transactions.”