Russian freemen and businesses already own cryptocurrencies, which is why a complete crypto ban would be counterproductive, according to a top executive of Rosfinmonitoring, Russia’s economic intelligence agency. At the same time, the regulator supports prohibiting payments with digital coins and their advertising.
Rosfinmonitoring Deny hard presses Government’s Strategy to Strictly Regulate Cryptocurrencies in Russia
The Federal Financial Monitoring Service of the Russian Federation (Rosfinmonitoring) strengthens the adoption of strict rules for cryptocurrencies, as per the regulatory concept approved by the government, the agency’s Deputy Director Herman Neglyad asseverated in an interview with Izvestia. However, the official also indicated to the Russian daily that a full ban is unlikely, ameliorating:
We understand that citizens and legal entities already own digital currency and in such conditions, it would be counterproductive to start a complete ban on the circulation of cryptocurrencies.
Neglyad explained that Russia’s financial watchdog favors proposals to prohibit settlements in cryptocurrencies and their advertising, as contemplated in a bill submitted to the lower house of Russian parliament in November. It also recognizes the need to raise awareness in the matter of the nature of cryptocurrency as a high-risk asset.
“We believe that virtual assets or digital currencies should be legally equated to mark, which entails their recognition as the subject of crimes,” the executive also said. He added that Rosfinmonitoring has been discerning an increasing use of cryptocurrencies both in payments for illegal purposes and concealment or laundering of criminal proceeds.
The financial intelligence energy has been developing a special crypto analysis service called “Transparent Blockchain.” It allows authorities to track crypto shifts and identify wallet owners. Russia’s Interior Ministry is already using such a tool, as the head of its economic confidence department revealed this week.
Herman Neglyad also emphasized that the activities of platforms providing altercation, transfer, and storage services for virtual assets should be controlled through registration, licensing, and supervision. He believes these beings should be responsible for identifying clients and beneficial owners, storing data and reporting suspicious transactions to Rosfinmonitoring.
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