Cryptocurrency News

Policies of the Central Bank of Russia Stop a Local Bank from Offering Crypto

As per the latest reports, Tinkoff is reportedly facing a very difficult time in fully operating and providing services to the locals/clients. The reports reveal that Tinkoff had showed great interest and willingness to offer cryptocurrency trading services to its clients.

However, the Russian major private bank is not able to do it because the Russian central bank has a strong stance against the issuance of digital assets. This is the reason Tinkoff is unable to offer cryptocurrency-related services to its clients.

Oliver Hughes, the CEO at Tinkoff has stated that their bank has always aimed to offer the latest and trending products to their clients. Despite the risks, cryptocurrencies have proven that they have the potential of boosting the revenues and profits of businesses and individuals alike.

This is the reason they want to avail themselves the opportunity for their clients as well as for themselves to increase their footing in Russia. However, the policies introduced by the Bank of Russia are causing many hindrances and restraints over their bank from offering services.

Oliver Hughes made the announcement around the postponing of offering crypto-trading services on Thursday, June 17, 2021.

Hughes stated that at present, the Russian central bank is holding its ground being a rigid entity against cryptocurrencies. Therefore, they have no mechanism or alternative for offering the cryptocurrency products to their clients.

He stated that the Bank of Russia is also closely observing the demand and interest that the Russian public has for cryptocurrencies. This demand and interest is constantly growing and the Russian central bank is well aware of this fact.

Tinkoff’s decision to offer cryptocurrency trading was based on the high demand that they had started receiving from their clients. Everyone wants to have a piece of the cryptocurrencies, now that they have become so lucrative.

Hughes stated that they had plans to offer cryptocurrency trading services to clients and investors who know their way around trades. They were not going to offer them to people or clients with zero or very minor knowledge around cryptocurrencies.

He stated that although there are several concerns around high volatility risks and money laundering, still the entire world has adopted cryptocurrencies. As per him, negativity is everywhere and the corrupt always find a way around system and all we can do is try to mitigate that as much as possible.

However, fully shutting down a service just because it poses great threat in terms of volatility and high risks is not the right decision. It goes to show that the regulatory authorities do not have a firm and sophisticated regulatory system surrounding such entities.

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