Russian banks are tightening scrutiny on USDT transactions, seeking detailed justifications from clients amid new regulatory changes.
In a move reflecting heightened caution, major Russian banks are now seeking detailed explanations from corporate clients regarding their USDT and cryptocurrency transactions, even from those outside the experimental legal regime (ELR). This development, reported by RBC, follows feedback from sources within the banking and cryptocurrency sectors, including Sovcombank.
Beyond the requirements set by federal law 115-FZ, banks are increasingly interested in understanding the economic justification for USDT purchases. They also require assurance that transaction counterparties are registered digital currency operators with the Bank of Russia, meeting anti-money laundering (AML) and counter-terrorism financing (CTF) norms. However, such a registry is not currently available.
Self-Insurance Rather Than Direct Orders
Viktor Pershikov, a cryptocurrency expert, indicated that banks are not acting on direct directives from regulators but are instead motivated by self-protective measures. He noted that before the recent law on digital currencies, banks and participants operated within a regulatory 'sandbox' but are now facing increased inquiries as cryptocurrency transitions into a fully regulated financial instrument.
"The interaction of crypto and fiat is becoming more complex, leading to heightened scrutiny from compliance departments regarding the nature and origin of funds," he stated.
While some Telegram channels speculate that the banks' actions may stem from a communication from the Central Bank, Pershikov believes the initiative likely originates from the Federal Financial Monitoring Service (Rosfinmonitoring). He argues that banks are justified in imposing these requirements, even in the absence of a formal registry.
"They have every right to inquire about the source of cryptocurrency transactions," he added.
Upcoming Registry with Limited Transparency
The Bank of Russia is expected to launch a registry for digital currency exchange operators this fall, albeit with limited transparency. Pershikov emphasized that participants in the ELR may be using cryptocurrency to bypass restrictions from unfriendly nations, complicating the regulatory landscape.
Specific operational guidelines for the registry and exchanges will be outlined in future subordinate legislation, leaving banks in a state of uncertainty as they navigate the evolving regulatory framework.
Current Requirements for Companies
Corporate clients engaged in the ELR must provide comprehensive AML/CTF documentation and clarify the nature and origin of their cryptocurrency holdings, including purchase sources and funding origins. This requirement aims to ensure transparency in their operations involving digital assets.
"The compliance burden on ELR companies is set to increase significantly," remarked Pershikov.
Risks for Non-Registered Crypto Companies
Companies providing crypto services without registration or an exchange license face serious legal repercussions under proposed bill No. 1193493-8, which aims to impose criminal and administrative penalties for illegal cryptocurrency activities, including asset confiscation. However, certain exemptions exist for those engaging in transactions under external trade agreements or those with monthly turnovers below 3.5 million rubles.
Legal Framework as a Resolution
Businesses reliant on USDT due to sanctions must now present valid economic justifications for their transactions. Pershikov believes the newly enacted law, effective September 1, will officially recognize cryptocurrency transactions as legitimate financial instruments, compelling banks to facilitate these transactions provided the necessary documentation is in order.
"With the new law in place, banks will have to process these transactions as long as all client documents meet regulatory standards," he noted.
The law "On Digital Currency and Digital Rights" will come into effect on September 1, with a transitional period extending until July 1, 2027.
