TLDR
- Russia to unfreeze bank accounts of crypto traders wrongly flagged for fraud.
- The Central Bank of Russia addresses widespread complaints from legitimate crypto users.
- Individuals can request an account review if wrongfully added to fraud databases.
- The Bank of Russia receives up to 1,000 complaints daily regarding mistaken blacklisting.
- The new “Antidrop” platform aims to prevent money laundering linked to cryptocurrency.
Russia has announced plans to restore access to bank accounts blocked due to crypto-related transactions. The country’s central bank, together with the Ministry of Internal Affairs, is working on measures to resolve the situation. These actions come after widespread complaints from legitimate crypto users whose accounts were mistakenly flagged for fraud.
Russia Moves to Unblock Bank Accounts Used for Crypto Exchange
The Central Bank of Russia (CBR) has begun to unfreeze assets of individuals linked to cryptocurrency exchanges. Many bank customers found their accounts blocked based on suspicious transactions related to crypto. These actions were initially intended to fight fraud, but they also affected legitimate users.
Vadim Uvarov, head of the CBR’s Information Security Department, addressed the issue during the “Antifraud Russia” conference. He explained that people wrongly added to fraud databases could request a review. Individuals affected can contact their banks or the Bank of Russia directly for assistance.
Despite these measures, many requests for account reinstatement are still being denied. Uvarov stated, “I can immediately say that we do not satisfy most of the requests received by the Bank of Russia.” According to him, most complaints come from younger people, especially those aged 15 to 24.
Bank of Russia Plans to Fine-Tune the Rehabilitation Process
Vadim Uvarov also revealed that the Bank of Russia intends to refine the rehabilitation mechanism. The regulator receives up to 1,000 complaints daily about mistaken blacklisting. Uvarov acknowledged that the complaints show the system needs adjustments.
CBR Governor Elvira Nabiullina recently admitted that the surge in complaints indicated overreach in the fight against fraud. She mentioned that the volume of complaints about unjustified account blocks had increased despite a drop in fraud signals. The Bank of Russia hopes to resolve the issue and improve the system’s effectiveness.
The new “Antidrop” platform is one of the measures the Bank of Russia plans to implement. This platform will help identify and block accounts used by criminals to move stolen funds, often through cryptocurrency transactions. These measures aim to prevent money laundering and fraud, but have caused unintended disruptions for legitimate traders. Russian authorities are still fine-tuning their approach to dealing with fraud and cryptocurrency transactions. While fraud detection methods aim to target criminals, they have inadvertently affected innocent crypto users as well.
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