The Police in Russia has confiscated 22 Crypto ATMs from stores and restaurants of 9 cities. This was done due to unregulated crypto ATM machines were operational and require regulation to run them. The order to confiscate was given by Prosecutor’s Office and Central Bank of Russia.
The Reason for this action was explained by a Central Bank Official who states that due to the usage of cryptocurrencies for illegal activities and uncontrolled cross-border funds transfer is key issues for which they have to take this action to seize confiscate ATM’s.
Bbfpro is the firm which manages the Crypto ATM’s in the country. Bbfpro’s ATM machines support Bitcoin(BTC) and few other cryptocurrencies as mentioned on their official website. The installation of single ATM machine costs 155,000 rubles ($2,300 USD). And all the ATM’s seized was operated by Bbfpro. The Manager of Bbfpro, Artem Bedarev said that they didn’t revive any prior notification from the authorities to confiscate the ATM’s. He also mentioned that this investigation might take time up to 6 months and the ATM machines will not be given back until its completed.
Legal Support Provided to Bbfpro
Digital Rights Center, is a firm which provides legal support for the companies like Bbfpro which deals with cryptocurrencies. Sarkis Darbinyan, a lawyer from the firm is working on the case of Bbfpro. Darbinyan said that the laws of Russian Federation do not prevent acquiring of cryptocurrencies. He also noted that the Bbfpro has is followed all legal procedures, pays taxes and does identity verification of the users. But currently, the company is facing financial losses due to Confiscation of crypto ATM’s. So they have appealed against the authorities to release the crypto ATM’s.
Currently, in Russia, there is no regulation for cryptocurrencies and any activities related to it. And the regulation is expected to take place this year September. Most of the crypto exchanges and businesses who are working with it are eagerly waiting for this regulation to take place.
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