Financial institutions advised to minimise activities related to digital currency turnover
Operations with digital currencies and related instruments bear risks that threaten people's welfare and may potentially involve them in illegal activities. The regulator has developed recommendations to mitigate such risks for clients of banks and other financial institutions. Specifically, these institutions should not promote services associated with the turnover of such instruments.
Banks are advised to identify digital currency buy/sell operations via accounts opened on behalf of straw men (drops). Banks may request additional information and documents from people conducting such operations and take this information into account when assessing people’s risk levels.
Operators in the market of digital financial assets (DFAs) are advised not to provide DFA issuance and turnover services, where the returns on such DFAs depend on the value of digital currencies and similar indicators. In 2021, the Bank of Russia already recommended that stock exchanges refuse to admit to the trading in financial instruments, where the returns on these instruments depended on the value of digital currencies, and that financial intermediaries refrain from offering such instruments to their clients — non-qualified investors.
The recommendations do not apply to central bank digital currencies and digital rights issued in accordance with the Russian legislation.
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