In Russia, one of the countries where uncertainty about cryptocurrencies persists, an executive talked about a possible method for the Central Bank of Russia to ban cryptocurrency transactions.
Andrey Mikhaylishin, CEO of local crypto payments startup Joys, said that he is working on several potential options for the Bank of Russia to activate the cryptocurrency ban, according to Forbes Ruussia’s report published today.
The CEO of Joys stated that one of the methods of crypto ban is the use of Merchant Category Codes (MCC). Using MCCs, it is aimed to prevent debit card payments to cryptocurrency exchanges and wallets.
In the Forbes report, it was also stated that the employees of the Central Bank were aware of the MCC method and it was among the potential options. Because the Central Bank can force local banks to ban card payment transactions via the MCC code.
At this point, it is considered that cutting the connection between cryptocurrency exchanges and banks is the ideal solution method.
What is MCC Code?
MCC codes are four-digit numbers used by credit cards such as Visa or Mastercard to describe a merchant’s business activities. For example, cryptocurrency transactions are known with the MCC code 6051, while market payments are usually known with the MCC code 5411.
MCC Code Might Not Be an Option!
Russia Blockchain Technologies Committee member Maria Stankevich stated that a ban with the MCC code could cause transparent and legal crypto exchanges to leave the country:
“I am 100% confident that honest and legit exchanges will leave the market if the correct MCC code is banned for cryptocurrency transfers. The entire market will be left to illegal exchanges that make crypto transfers using other codes for crypto transactions.”
Expressing that he is optimistic about the future of the crypto industry in Russia, Stankevich said, “I personally know many senior officials in Russia who understand the importance of crypto,” and pointed out that the only regulator in the country against crypto adoption is the Central Bank of Russia.
In a statement recently made by President Erdoğan, “The cryptocurrency law is ready, we will take a step in this regard by sending it to the Parliament without delay.” His saying brought up the questions of what kind of regulations will come in Turkey.
Although it is not expected that Turkey will adopt a prohibitive stance towards cryptocurrencies, some strict measures can be taken to keep the money going out in the country due to the fluctuation in the Turkish Lira in recent days. At this point, the promotion of the use of domestic cryptocurrency exchanges and tax regulations come to the fore.