Cryptocurrency Exchange BestChange Faces Website Block in Russia Amid Regulatory Uncertainty
February 11, 2024 | By Alexander Marrow
In a development that highlights the evolving landscape of cryptocurrency regulations in Russia, the digital exchange platform BestChange has reported that its website, bestchange.ru, has been blocked by the country’s communications watchdog, Roskomnadzor. The platform, which facilitates the exchange of various cryptocurrencies, stated on Monday that it is unclear why the action was taken, but it is actively seeking clarification from the Central Bank of Russia.
Website Blockage Details
On Monday, BestChange acknowledged the website blockage, stating, ‘Unfortunately, we cannot account for the exact reason why this has happened. We are communicating with the central bank to pinpoint the reason and interacting with the regulator to clarify the situation and lift the block.’ The platform confirmed that Roskomnadzor’s official website lists its URL as restricted.
According to Russian news agency RIA, the restriction imposed by Roskomnadzor stems from alleged legal violations ‘in the financial sphere.’ However, at the time of the report, Roskomnadzor had not responded to requests for further details regarding these claims.
Changes in Cryptocurrency Regulation
The blockage of BestChange comes during a period of increased regulatory scrutiny surrounding cryptocurrencies in Russia. While the circulation and advertisement of digital currencies remain strictly banned, recent legislation has legalized cryptocurrency mining and allowed for the use of cryptocurrencies in international payments. This legal landscape shift is part of Russia’s efforts to adapt to economic pressures, including sanctions from Western countries that have disrupted conventional payment methods.
Last year, the Russian government introduced new legal frameworks for cryptocurrency mining which are expected to yield significant tax revenue—projected to bring in up to 200 billion roubles (approximately $2 billion) annually. However, the country has also implemented restrictions on crypto mining activities in certain regions, particularly in Siberia, to mitigate power shortages.
Ongoing Communication with Regulators
BestChange speculated that the recent ban could be connected to new regulations concerning cryptocurrencies or possibly due to issues associated with an entity utilizing its platform. The exchange is maintaining dialogue with regulatory bodies in an effort to understand and potentially resolve the situation.
As Russia navigates its stance on digital currencies, including the liberalization of some aspects of cryptocurrency use for international trade, the situation surrounding BestChange underscores the complexities and challenges facing cryptocurrency platforms operating within the country.
For ongoing developments, BestChange and other stakeholders in the cryptocurrency market remain alert to the regulatory environment and any further actions from Roskomnadzor.
Currency Conversion Note
For reference, the current exchange rate is approximately $1 = 96.20 roubles.
Reporting by Alexander Marrow; Editing by Christina Fincher
Our Standards: The Thomson Reuters Trust Principles.
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