Analyst Explains Why Banks Rarely Block Cryptocurrency Operations

MOSCOW, April 20 – PRIME. Credit institutions rarely block transactions that could potentially be associated with cryptocurrencies, as they are difficult to track among other user transactions, Anatoly Perfilyev, junior director for banking ratings at the Expert RA agency, told RIA Novosti.

“Cryptocurrency is not legalized in Russia, but it is not directly prohibited either. In order to avoid unnecessary claims and questions from the regulator, banks reinsure themselves and block operations potentially related to cryptocurrencies. At the same time, blocking is not massive, since digital currency purchase and sale operations are disguised as household transactions are not outwardly obvious,” Perfiliev said.

Banks, if there are suspicions, in some cases may ask customers for documents confirming the source of funds. Quite often, legitimate transactions can fall under the criteria of dubious ones and be blocked. “If there are supporting documents, the bank should skip the operation, but the final decision remains at its discretion,” the expert explained.

Last week, one of the clients of Tinkoff Bank reported on his social networks that his account was blocked without explanation. The bank explained to RIA Novosti that the temporary restriction of remote banking services occurred as part of automatic financial monitoring. Some transactions conducted by the client fell under the criteria of doubtful, described in the methodological recommendations of the Bank of Russia.

In September 2021, the regulator issued “Methodological recommendations on increasing the attention of credit institutions to certain transactions of individual customers.” In them, the Central Bank gave recommendations to credit organizations to identify payment cards and electronic wallets that are used by illegal online casinos, organizers of financial pyramids, illegal forex dealers and online cryptocurrency exchangers.