Raids on Mosca Crypto Exchange Amid Proposed Cash-to-Crypto Transaction Ban

Mosca, a crypto-to-cash exchange in Moscow, was raided amid a proposed ban on cash-to-crypto transactions. This follows the involvement of a customer in a fraud case linked to significant financial losses for an elderly victim. Mosca’s head confirmed the raids focused on customer data checks, as the exchange enhances its AML and KYC efforts. The raids raised concerns about the future of cryptocurrency regulations in Russia, particularly during a major crypto conference.

In a dramatic turn of events, early morning raids struck Mosca, a prominent Moscow-based crypto-to-cash exchange on April 23. This incident ties to ongoing discussions in Russia about potentially banning cash-to-cryptocurrency transactions, a proposal made by Evgeny Masharov of the Russian Civic Chamber. The raids were confirmed by Mosca’s development head, Dmitry Titarenko, who stated that law enforcement was merely conducting checks on customer data due to a fraud case involving a client.

These raids have raised eyebrows, especially following reports about a larger crypto scam that allegedly involved the elderly former government adviser Olga Serova, who fell victim to fraudsters, losing as much as 421 million Russian rubles, approximately $5.1 million. At least seven people have been arrested concerning this case, although Titarenko wasn’t sure whether the case linked directly to their operation at Mosca. He also noted that the raid was their first in three months, dispelling any notion of ongoing legal troubles for the exchange.

Mosca permits customers to buy up to 100,000 USDT daily in cash, a practice now under scrutiny due to the proposed cash-to-crypto ban. Masharov insists this ban could help protect investors and hinder fraudsters who exploit exchanges for cash withdrawals. Amidst this, Titarenko revealed that Mosca has been intensifying its efforts in Anti-Money Laundering (AML) and Know Your Customer (KYC) measures, including a blacklist of dubious users, as they navigate this increasing tension.

Mosca’s disruption came just as the Blockchain Life conference kicked off in Moscow, marking a significant return of local crypto events. The exchange was recognized at this event, winning accolades for its services. Sergey Mendeleev, a notable voice in the crypto community, expressed concern over the proposed ban’s implications for future crypto adoption in Russia, characterizing it as an alarming potential regression. Mendeleev also pointed to a pattern of police action against exchanges within the Moscow International Business Center, where other exchanges like Garantex have also found themselves in legal trouble recently, particularly after being hit with sanctions incidents.