MOSCOW, January 17 (RAPSI) – A proposal by Russian lawmakers to help curb terrorism by lowering the limit on online transactions will damage internet commerce and electronic payments systems, says Russian PayPal head Vladimir Malyugin .

A group of lawmakers on Wednesday introduced a bill, that proposed new restrictions on electronic payments as part of an effort to curb extremist activities. Transferring money abroad anonymously using such systems such as Yandex Money or PayPal would no longer be possible, while domestic usage would be capped at 15,000 rubles ($450) a month, down from the current 40,000 rubles ($1,200).

“PayPal supports the fight against terrorism. However, the company considers that these amendments need additional review with participation from the business community and with consideration of the Russian internet users interests,” Malyugin added.

The explanatory memo to the bill states that it is aimed at lowering risks of using  payment methods that do not require a user ID as part of an effort to stop the financing of terrorism and money laundering. This broad definition includes major electronic payments provider, Qiwi, and most of the digital wallet services such as Paypal or Yandex.Money.

Qiwi saw millions of dollars of value destroyed in New York trading Wednesday, when it registered a 17 percent decline on the Nasdaq stock exchange. Russia’s Sberbank cautioned against buying Qiwi stock on Thursday and predicted a “severe deterioration in the financials” of the company if the anti-terrorism bills were passed.

Two terrorist bombings in as many days killed more than 30 people in the city of Volgograd just before the New Year’s holidays. The city is a gateway between Russia’s North Caucasus, where insurgent attacks remain frequent, and the rest of the country.

There has been widespread concern for the security of the Sochi Winter Olympics, slated to open February 7, following the attacks.