Crypto ATMs were seized from a Russian company at the request of the Central Bank

Last week, on August 31, all crypto ATMs belonging to the company BBFpro were seized by the police without explanation.

Until last Friday, the Russian Federation ranked fifth in the world in terms of the number of operating crypto ATMs (79 terminals). However, Russian police officers made their own adjustments to this rating, seizing almost a third of the total number of crypto terminals in one day. Moreover, all terminals belong to the network of the BBFpro company, one of the largest in Russia.

The company has not received any warnings or requests from regulators. I also received no official explanation from the police themselves. Only in an oral statement did police representatives note that the seizure of the terminals was being carried out for verification, based on a request from the Central Bank of Russia to the Prosecutor General's Office, presumably for six months.

The Central Bank did not make an official statement regarding a specific seizure, limiting itself to a reminder of carrying out systematic work to combat illegal activities in the financial market. 

Such actions by regulators caused bewilderment of the lawyer representing the interests of the company. In his opinion, the company did not violate the current legislation, due to the fact that there are simply no restrictions on cryptocurrency transactions. The BBFpro company operates officially on the Russian market, pays taxes and does not fall under the definition of anonymous cross-border money transfers. The company's terminals provide a client verification procedure. The current cryptocurrency exchange rate is calculated based on data from the EXMO exchange, and a commission of 6 percent for cryptocurrency transactions is included in the company’s tax base. All information that is of interest to law enforcement agencies and the Central Bank is available on the company’s website. 

Despite the absence of legal reasons, by Friday afternoon, 22 terminals located in shopping centers, bars and shops in nine large cities were seized. The company is now assessing the financial and reputational damage caused to it and plans to appeal against what its lawyers consider illegal actions of regulators.