KoronaPay bans all crypto trading amid Russia stance on Bitcoin et al

Rick Steves

“We want to reassure them that we have a zero tolerance policy for crypto related transactions and we will report any suspicious activity to the relevant authorities, as required by AML legislation, including in Europe.”

Russia

KoronaPay has banned all crypto related transactions including cryptocurrency trading as the largest money transfer services across Europe and the CIS region reacts to the Central Bank of Russia’s position on crypto and its risks of financial losses and fraud.

The Russian central bank has started to examine the operations of Russian banks with cryptocurrency exchanges, which has led
KoronaPay to formally ban all crypto related transactions.

In addition, it deployed a specially designed anti-fraud tool that uses AI to monitor and block transactions with crypto exchanges.

Russia pushes back against digital currencies

According to the Central Bank of Russia, Russians are among the most active users in the cryptocurrency market with transaction volumes reaching $5 billion a year and the country ranking third in Bitcoin mining.

The central bank proposed a ban on the mining of cryptocurrencies as well as prohibit the payment of goods and services using digital currencies, including the issuance and exchange of cryptocurrencies. The Central Bank is also looking to introduce a ban on investing in cryptocurrencies.

Gleb Kozlov, Chief Executive Officer at KoronaPay Europe, said: “While regulators in some European countries are still relatively relaxed about the explosive growth of crypto, It is increasingly clear that regulators in some of our markets are now pushing back against the rise of digital currencies.

“We want to reassure them that we have a zero tolerance policy for crypto related transactions and we will report any suspicious activity to the relevant authorities, as required by AML legislation, including in Europe. We are particularly concerned about the emergence of fraudulent exchanges, which often feature the names and logos of established financial institutions and payment providers on their websites to mislead consumers.”

This move is a huge blow for KoronaPay users that invest, trade, and consume goods using crypto assets, but the firm is confident that it will continue to win over the migrant population in Europe as it offers payments across 79 countries in Europe, CIS, Middle East and Asia.

The company is acquiring over 10,000 new users every week and is targeting €300m of remittances per month in Europe by the end of 2022.

Russia wants to ban crypto trading and mining

The Central Bank of Russia advocates the end of crypto trading and mining in the country as crypto assets are seen as a threat to monetary policy sovereignty and the country’s financial stability.

The proposal, which is in line with the CBR’s hard line stance on digital assets, comes after the regulator sought to bar investment in cryptocurrencies in the country. However, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses. If approved, it wouldn’t penalize old purchases of cryptocurrencies.

In a report titled “Cryptocurrencies: Trends, risks, measures”, the central bank said cryptocurrencies carry the hallmarks of a Ponzi scheme, warning of potential bubbles in the market. Russia’s apex bank also voiced concerns about risks to financial stability due to the high volatile nature of crypto transactions. According to its estimates, the annual volume of crypto transactions in the country is around $5 billion.

Further explaining its unfavorable stance against cryptocurrencies, the regulator argued that they could be used to fund terrorism and result in money laundering.

The Bank of Russia is reportedly discussing with market players and industry experts in connection with the possible prohibition. The proposed ban extends to OTC trading desks, crypto exchanges as well as P2P platforms.

 

Read this next

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

<