Increasing Scrutiny of Crypto Exchanges in Russia
The ongoing discussions around imposing a ban on cash-to-cryptocurrency transactions have led to heightened scrutiny of crypto exchanges in Russia, culminating in police intervention recently at Mosca, a prominent local crypto-to-cash platform.
Police Raid at Mosca
On April 23, law enforcement executed a raid at Mosca’s office situated in the Moscow International Business Center, prompted by a fraud case involving one of its customers. Dmitry Titarenko, the company’s head of development, confirmed to Cointelegraph that authorities were following standard protocols to verify customer data during their investigation, which unfolded at the Blockchain Forum 2025 in Moscow.
This police action arose in the context of serious fraud claims, with several arrests reportedly made in connection with a significant crypto-related scam. Reports highlighted that a victim, identified as Olga Serova, a former advisor to the government in Samara, was allegedly defrauded of approximately 421 million rubles (around $5.1 million).
According to local news outlet Baza, investigators arrested at least seven individuals tied to this case.
Proposed Cash-to-Crypto Ban
The idea of a cash-to-crypto ban gained traction following proposals from Evgeny Masharov, a member of the Russian Civic Chamber. He argued that such a ban could effectively disrupt the operations of fraudsters who misuse cryptocurrency exchangers to withdraw cash. In his comments, Masharov highlighted the critical role cryptocurrency has played in facilitating scams, emphasizing that it could serve to protect investors from falling victim to similar criminal activities.
Despite the timing of the raid, Titarenko could not determine whether the circumstances surrounding Serova were directly linked to Mosca’s encounter with law enforcement. He indicated that the company had not faced any prior direct criminal investigative actions for three months.
Operations and Compliance in Crypto Sector
Mosca allows customers to purchase cryptocurrencies like Tether (USDT) with cash up to a limit of $100,000 per day and has been enhancing its compliance measures, actively implementing stringent Anti-Money Laundering practices and maintaining a list of flagged users.
The raid occurred during Blockchain Life, a major crypto event, where Mosca was a key participant and received accolades as the best crypto exchange service. Sergey Mendeleev, a well-known figure in Russia’s crypto industry, voiced concerns regarding the proposed cash-to-crypto transaction prohibition, suggesting that it could signify a shift away from accepting cryptocurrency in the country, hindering potential growth and adoption.
He pointed out that such raids at exchanges within Moscow International Business Center, known as Moscow City, are often part of the regulatory landscape affecting the local crypto sector. This scrutiny follows the fate of Garantex, another exchange in the area that ceased operations after significant funds were frozen due to regulatory actions.
