A total ban on cryptocurrencies in Russia is not a feasible option, according to a representative of the country’s Financial intelligence agency, Rosfinmonitoring. The official stated that citizens and businesses already own cryptocurrencies, making a prohibition on them ineffective.
Rosfinmonitoring Supports Government’s Plan to Strictly Regulate Cryptocurrency in Russia
The Deputy Head of the Federal Service For Financial Monitoring of the Russian Federation (Rosfinmonitoring), Herman Neglyad, said in an interview with Izvestia that the Russian government’s concept of strict regulation of cryptocurrencies is supported by the agency. He added that a complete ban is not likely to take place.
We understand that digital currency is already owned by citizens and legal entities. To prohibit its circulation would be pointless.
Neglyad noted that the agency supports a bill that was submitted to the lower chamber of the Russian Parliament in November, which proposes banning cryptocurrency payments and their advertising. He also highlighted the need to increase public awareness about digital currencies as high-risk assets.
“We believe that virtual assets or digital currencies should be legally equated to property, which implies their recognition as the object of crimes,” he added. Rosfinmonitoring has observed an increase in the use of cryptocurrency in illegal payments and money laundering activities.
The financial intelligence agency is working on a service called “Transparent Blockchain”, which allows law enforcement agencies to identify wallet owners and track cryptocurrency transactions. The head of the economic security department of the Russian Interior Ministry said the tool is already in use.
Herman Neglyad also emphasized that service providers offering virtual asset transfer, storage, and exchange services must be registered, licensed, and monitored. He believes that such entities should be responsible for customer and beneficial owner identification, records keeping, and reporting of suspicious transactions.
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