TL;DR Breakdown
- The crypto regulation environment in Russia took a twist when a local Russian court swooped into the picture.
- The court has direct the Russian bank, Sber, to lift off the blockage imposed on the account of a Bitcoin trader.
- Despite the trader complying and citing reasons for transactions, the bank had decided not to lift the blockage.
Formerly called Sber bank, the Russian bank Sber has seemed to have landed in a tough spot as a local court in the city of Yekaterinburg. The regulation picture in Russia seems to be quite confusing as the bank put a block on the account of a Bitcoin trader.
The trader had made several transactions from his bank account to his crypto exchange account that made it all difficult for the trader. Between May and August of the year 2020, the trader held multiple transactions to crypto exchanges which aroused the suspicions of the authorities.
Sber blocked the account on the basis of suspicions
Taking note of these transactions, the Russian bank decided to impose the ban. After imposing the ban, the trader had reportedly provided his clarifications and explanations to Sber officials. But, the bank had decided not to lift the account restrictions.
As a result, the Sverdlovsk regional court addressed the case wherein it stated that it was wrong of the bank to put a ban on the account of the trader after the person had given his testaments along with proof.
Violation of consumer rights
The Sber client appealed to the court claiming that the bank was violating the client’s consumer rights. The bank made its decision as it released a statement wherein the bank has been ordered to cover the client’s legal expenditures along with immediately lifting the restrictions on the account but denied the trader’s claim of moral damage.
The bank will now resume the Bitcoin trader’s account. Sber has been known for withholding the accounts of several crypto traders, maintaining a negative view of cryptocurrencies.
