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Thursday, January 16, 2014

Qiwi (QIWI) drops as Russia moves to expand police powers before Olympics

Qiwi's downfall came on reports that Russia's Duma was set to vote Wednesday on a set of anti-terrorism measures. The legislation would, among other things, "oblige websites to inform authorities about their users, restrict anonymous Web payments and also broaden powers of security officers," according to the Moscow Times.

One basic aim of the bill was to restrict money laundering, seen as a key source of finance for terrorists. Proposed restrictions include holding anonymous Web payments made in Russia to below 1,000 rubles ($30) per day for one payment or 15,000 rubles ($450) per month for one user, and ban anonymous Web payments from abroad, the Moscow Times reported.

The restrictions could bear directly on Qiwi's customers, who use ATM kiosks to make online payments and money transfers.

Wednesday's loss of as much as 22% drove Qiwi shares deep below their 10-week moving average, a key line of support.

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