Roskomnadzor Bans Russia’s Largest Crypto OTC Aggregator, BestChange

Russia’s communications regulator, Roskomnadzor, has recently blocked access to BestChange, one of the largest cryptocurrency over-the-counter (OTC) aggregators in Eastern Europe and Russia. The reason behind the ban remains unclear as of now, and the platform is listed among the blocked sites, but the regulator has not provided any official explanation.

BestChange, which was founded in 2007, has been a long-standing aggregator of various cryptocurrency OTC platforms, offering a service for users to exchange digital assets. It is considered the largest of its kind in Russia. A spokesperson from BestChange confirmed that its legal team is already working to resolve the issue and lift the ban, but they have refrained from commenting on the specific cause of the restriction.

This is not the first time that BestChange has faced blocking in Russia. In 2017, the platform was first banned by a St. Petersburg court, which claimed that Bitcoin was a monetary surrogate and that blockchain’s irreversible transactions made regulatory enforcement challenging. However, the court lifted the ban in 2018. In 2019, Roskomnadzor imposed a block again but removed it a few months later.

The current ban comes nearly six months after Russia enacted a new law on Bitcoin mining and cryptocurrency advertising. This law targets advertisements related to digital assets and restricts platforms that facilitate crypto transactions, including services that enable users to transfer digital currencies using Russian infrastructure.

As part of the law, Russia’s largest search engine, Yandex, updated its advertising policy to prohibit promotions for crypto-related services. This includes banning ads for crypto exchanges, smart contracts, mining, initial coin offerings (ICOs), and even services that track wallets for potential money laundering activities.

The ban on BestChange is seen as part of Russia’s broader efforts to regulate the cryptocurrency sector, particularly as it aims to tighten control over digital asset transactions and curb any activities that may potentially circumvent government oversight.