Russian Crypto Exchange Ban Resurfaces Amid Beribit Withdrawal Saga

The Russian State Duma, the lower legislative chamber, has re-ignited talks about banning crypto exchanges in the country. The conversations emerged from the internal crisis roiling Beribit Exchange, one of the top trading platforms in the country.

Beribit Crypto Exchange Might Hit The Rocks

Beribit Exchange is battling intense pressure with processing customers’ withdrawal requests. The problem per media reports started when the office of the trading platform was raided by authorities. This raiding was allegedly in connection with the terror attack on Crocus City Hall.

With the raid, tension sprung up with the exchange’s customers laying siege to collect their deposited funds. As reported, as many as 50 customers are in the exchange’s premises demanding to withdraw as much as $4 million in deposits. 

Rather than process the funds, the exchange’s staffs were reportedly handing out Chocolate bars to the clients. The aggrieved customers have prevented any form of escape from the bank’s workers and have involved the police.

The trading platform has revealed that it is doing all it can to process the customer’s requests. The exchange promised to credit the customers in about 2 weeks with the first tranche of payments already going out. The challenge Beribit is facing is reminiscent of an exchange close to imploding, with observers closely watching what will happen.

Russian Lawmakers Might Take Advantage

Lawmakers are generally always looking to regulate the crypto ecosystem. With the twist in Beribit’s operational crisis, lawmakers have introduced a bill that will ban crypto exchanges in the country. This is not the first time Russia will be considering to impose some forms of ban on crypto, however, the Beribit challenge forms a crucial catalyst.

The Bill will spare cryptocurrency miners with valid registration with the government. The lawmakers are also not looking to proscribe crypto transactions the way China did in 2021. Some lawmakers believe crypto is still a viable asset to fend off sanctions imposed by the West over ongoing war with Ukraine.