Cryptocurrency exchange platform BestChange has reported that it is uncertain why Russia’s communications watchdog, Roskomnadzor, has blocked its website. The platform is currently communicating with the central bank to address the ban.
Circulating and advertising digital currencies is prohibited in Russia, although using cryptocurrency for international payments and cryptocurrency mining is now legal.
“bestchange.ru has been restricted in Russia by Roskomnadzor,” the platform stated in response to a request for comment on Monday. “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.”
Roskomnadzor’s website lists bestchange.ru as blocked. According to the RIA news agency, Roskomnadzor stated the ban was due to legal violations “in the financial sphere.”
Roskomnadzor has not yet responded to requests for further comments.
BestChange suggests that new regulations regarding cryptocurrency, or issues with an entity using its services, may be reasons behind the ban.
Last year, Russia legalized cryptocurrency mining and enacted taxes that could generate up to 200 billion rubles ($2 billion) annually from miners. Moscow has since restricted cryptocurrency mining in some Siberian regions to prevent power shortages.
In line with this legislation, Russia has permitted businesses to utilize cryptocurrencies in international trade as Moscow seeks to bypass Western sanctions causing payment delays, although a trial period has yet to commence.
( $1 = 96.2000 roubles )
