Skip to main content

Bank of Russia Lists Crypto Companies Among Financial Pyramids

Bank of Russia Lists Crypto Companies Among Financial Pyramids

The Central Bank of Russia has recently expanded its database of financial market players suspected of illicit activities. Several crypto companies have been added to the list along with entities bearing signs of Ponzi schemes, as well as illegal credit organizations and forex dealers.

Central Bank of Russia Blacklists Crypto Platforms

As part of its monitoring of the financial sector, the Central of Russia (CBR) regularly identifies illegal financial services providers and warns Russian investors about fraudulent platforms. This week, the regulator added another 105 companies to its growing list of businesses showing “signs of illegal activities in the financial market.”

Among the new entries, the monetary authority has blacklisted a number of crypto companies. Most of them have been classified as resembling financial pyramid schemes. Bitflows, Bitkoresh, Bittrex-global, Crypto Invest Club, Idleminer, Miners Capital, and Money Miner fall under this category. Another entity, Bitford, has been designated as an “illegal professional participant in the securities market.”

The bank reminded the public that in order to offer most financial services in the Russian Federation, providers are required to obtain a license from the central bank or register with the regulator. “If this condition is not met, then, most likely, the organization operates illegally, and consumers can be deceived,” the authority says while also warning it’s not obliged by current law to compensate victims of illegal platforms.

Last month, Bank of Russia blacklisted three entities — To The Mars, To The Moon, and TTM Group — linked to the promotion of the Finiko crypto pyramid. Financial damages attributed to the Ponzi scheme, one of the largest in modern Russian history, amount to $4 billion, according to independent estimates quoted by Forklog. A report by Chainalysis revealed the pyramid received over $1.5 billion worth of bitcoin in less than two years before it collapsed this summer.

CBR blacklisted Finiko in February and a batch of 15 cryptocurrency projects was added in June, the crypto news outlet noted. “To suppress illegal financial activities, the Bank of Russia takes measures to block the websites of such companies, and also interacts with law enforcement and other authorized bodies, foreign regulators to apply other measures,” the authority explained.

The Central Bank of Russia has continuously opposed the adoption of cryptocurrencies, issuing multiple warnings for investors. Last week, its Deputy Chairman Sergei Shvetsov stated the bank would not support increasing access to crypto markets, insisting cryptocurrency is “highly risky and has signs of a pyramid scheme.” Earlier in September, the regulator recommended banks block cards and wallets used to transact with crypto exchangers, and in July, CBR advised Russian stock exchanges to avoid trading crypto instruments.

Do you think Bank of Russia is treating companies involved in the crypto space equally? Share your opinion in the comments section below.



from Bitcoin News https://ift.tt/3m0MBYK

Comments

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli