Russia Monitors Crypto Transactions Strictly

Russia’s financial monitoring agency, Rosfinmonitoring, said it was using software to track cryptocurrency transactions. They also hope to improve those capabilities as Moscow regulates what one lawmaker has dubbed “cryptomania”.

The Bank of Russia (Russia’s central bank) has long voiced skepticism over cryptocurrencies due to concerns over financial stability. They have also advocated a complete ban on trading and mining the digital currency.

“Russia has identified certain criminal cases involved in cryptocurrencies,” said head of Rosfinmonitoring Yuri Chikhanchin, quoted by Reuters on Monday (11/7/2022).

He added that the agency wants to improve its systems and identify currently hidden transactions and blockchains.

Chikhanchin said it was currently impossible to cover everything, in part because not all countries agreed to regulate the industry.

“It’s really hard when a cryptocurrency account gets into an unregulated zone and we don’t understand who is on the other end,” he said. “But I think we will still complete this task.”

Anatoly Aksakov, head of the finance committee in Russia’s parliamentary assembly, said a draft law on regulating cryptocurrencies would be submitted to the assembly in the fall of this year.

“Obviously there will be strict regulations,” Aksakov said. He also compared “cryptomania” to addiction in the gambling sector, which is strictly regulated in Russia. The same needs to be done with crypto exchanges and trading. Because this crypto phenomenon exists and cannot be ignored.

The crypto industry has been in the crosshairs of regulators, who are concerned that the recent crisis in volatile markets could hit the broader financial sector.

Russia’s central bank has said it is open to allowing cryptocurrencies to be used for international settlements and has approved other digital asset transactions

Aksakov also expects the cryptocurrency mining law to be considered soon, an area the government hopes to tax.

Unlike payment companies, most crypto exchanges initially rejected calls to cut off all Russian users. The request was requested because it sparked concern among US lawmakers that digital assets could be used to evade Western sanctions against Moscow for its actions in Ukraine.