Amid the ongoing uncertainty well-nigh the hereafter of cryptocurrencies in Russia, one local industry executive has disclosed a potential method for the Bank of Russia to block crypto transactions.

Andrey Mikhaylishin, CEO of the local crypto payment startup Joys, said that the Russian central bank is at present considering several potential options to make its crypto ban possible, Forbes Russia reported Friday.

Ane of the possible restriction methods includes blocking debit card payments to crypto exchanges or wallets using merchant category codes (MCC), Mikhaylishin said. The report notes that the executive became enlightened of this blocking method from Depository financial institution of Russia employees.

MCC codes are four-digit numbers used past credit carte du jour processors such equally Visa or Mastercard to describe a merchant'southward primary business activities. For example, crypto transactions are usually identified with the 6051 MCC code, while payments at grocery stores accept the 5411 MCC lawmaking. Co-ordinate to the study, the Bank of Russia could oblige local banks to merely ban transactions with the 6051 MCC code.

While the potential plan is apparently all the same beingness discussed in Russian federation, some industry figures have questioned the effectiveness of such a strategy.

Maria Stankevich, a member of the Russian Commission on Blockchain Technologies and Cryptoeconomics, told Cointelegraph that potential MCC-based restrictions would trigger transparent businesses to exit the country while not affecting illegal crypto exchanges:

"I am 100% sure if they prohibit transfers to cryptocurrency with the right MCC, then honest exchanges will go out the market in the first place. In that location will remain grey crypto exchanges, which will do so-called miscoding, using other codes for transactions."

Stankevich suggested that miscoding penalties at providers similar Visa are bereft for illegal crypto exchanges to finish their operations. As previously reported, in that location are several grey crypto businesses in Russia, with at least fifty of them located in Moscow City, a financial commune in Russia's capital.

The executive also expressed optimism almost the cryptocurrency industry in Russia, pointing out that the Bank of Russia is essentially the only regulator that is against crypto adoption in the land:

"We have always known that the cardinal bank is confronting crypto and wants it to exist banned, but I still don't think that this will be the way for Russian federation because the central bank is in the minority at that place."

Related: Bank of Russia governor: Banning crypto in Russia is 'quite doable'

"I personally know many loftier-ranking officials in Russia that understand the importance of crypto," Stankevich added.

The news comes after Bank of Russia governor Elvira Nabiullina appear the banking concern's intention to prevent the local financial system from using crypto. Another executive at the depository financial institution subsequently claimed that Russians will merely be able to invest in cryptocurrencies similar Bitcoin (BTC) through strange companies.