Rosfinmonitoring plans to revise regulations for cryptocurrency transactions, requiring full client identification and increasing operational oversight.
Rosfinmonitoring is set to revise regulations governing the circulation of digital currencies, as indicated by the agency's advisor, Vlada Korchagina.
The upcoming regulations will mandate that new market entrants fully identify their clients and reveal information regarding beneficiaries and involved parties. This will particularly impact brokers and trust managers engaging in cryptocurrency and digital rights.
To alleviate the operational burden on cryptocurrency exchanges and depositories, these entities will have the option to assign identification duties to commercial banks and professional securities market operators.
Additionally, the scope of mandatory oversight will be broadened to include five new categories of cryptocurrency-related transactions. Plans are also underway to incorporate a digital depository into the system that supports transaction transfers.
In line with the Travel Rule, transactions will now require detailed information on both the sender and recipient, mirroring standards already in place in the EU and numerous jurisdictions under the Financial Action Task Force (FATF).
Some of these requirements are already established in law. Federal Law No. 115 currently categorizes digital financial asset transactions exceeding 1 million rubles as subject to mandatory control, enabling banks, brokers, and digital depositories to halt suspicious cryptocurrency transactions. There is also a designated oversight for foreign trade transactions involving digital rights as counter-provisions.
Korchagina emphasized the importance of these measures in aligning Russia's anti-money laundering framework with FATF standards ahead of an evaluation, aiming to "decriminalize" the cryptocurrency and digital asset sector.
The new regulations will come into effect following the passage of the bill "On Digital Currency and Digital Rights," which has only completed its initial reading thus far.
It is important to note that the revised FATF assessment methodology shifts the focus towards the effectiveness of enforcement actions, requiring countries to not only enact laws for the crypto sector but also demonstrate robust oversight and adherence to the Travel Rule to avoid being categorized on the "grey list."
