Expert: The Central Bank of the Russian Federation may prohibit operations with cryptocurrency through the MCC

Briefly:

  • The Central Bank of the Russian Federation may restrict cryptocurrency transactions
  • One of the ways is blocking by MCC-encoding, which is used to mark transactions on bank cards
  • Experts are sure that this will entail an outflow from the market of those exchanges that work honestly

The head of the open blockchain platform Joys, Andrey Mikhailishin, shared his opinion on the prohibition of cryptocurrencies in the Russian Federation. He believes that for this, the Central Bank of the Russian Federation may resort to blocking individual MCCs.

This is a four-digit cipher used by such payment systems as Visa and Mastercard. The MCC is needed to classify the type of business of the company when conducting a transaction from a debit card.

Operations with cryptocurrency are carried out according to the combination 6051. It is enough for the regulator to block it in order to deprive Russians of the opportunity to replenish their accounts and buy digital assets from bank cards.

Member of the Committee for Cryptoeconomics and Blockchain Technologies of the Government of the Russian Federation Maria Stankevich believes that this will entail the withdrawal of all “white” companies from the market. But the “gray” and those who work illegally will remain.

They just need to change the MCC-code of the transaction to bypass the restriction. Of course, there are fines from the payment system for this. But they are significantly less than the profit that “gray” crypto-exchanges receive.

Recall 20 On December, Reuters published an article that the Central Bank of the Russian Federation is preparing a package of measures to restrict the cryptocurrency sector.

Later, the head of the regulator Elvira Nabiullina indirectly confirmed this. According to her statement, the Central Bank is indeed opposed to Russians using the fiat system to trade digital assets.

Read about why Russia is not ready for the introduction of bitcoin, as well as about the deplorable state of the country in the world ranking of the development of the cryptoindustry, read on our website.

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