A Complete Crypto Ban in Russia Would Be Counterproductive, Says Rosfinmonitoring CryptoBlog

Russian citizens and businesses already own cryptocurrencies, which is why a complete crypto ban would be counterproductive, according to a senior executive at Rosfinmonitoring, Russia’s financial intelligence agency. At the same time, the regulator supports the prohibition of payments with digital coins and their advertising.

Rosfinmonitoring supports government strategy to strictly regulate cryptocurrencies in Russia

The Federal Financial Monitoring Service of the Russian Federation (Rosfinmonitoring) supports the adoption of strict rules for cryptocurrencies, in accordance with the regulatory concept approved by the government, the agency’s deputy director, Herman Neglyad, said in an interview with Izvestia. However, the official also told the Russian daily that a full ban is unlikely, stating:

We understand that citizens and legal persons already own digital currency and under such conditions it would be counterproductive to introduce a complete ban on the circulation of cryptocurrencies.

Neglyad explained that Russia’s financial watchdog is supportive of proposals to ban cryptocurrency settlements and their advertising, as envisioned in a bill submitted to the lower house of the Russian parliament in November. It also recognizes the need to raise awareness about the nature of cryptocurrency as a high-risk asset.

“We believe that virtual assets or digital currencies should be legally equated with property, which entails their recognition as a subject of crimes,” the executive also said. He added that Rosfinmonitoring has seen an increasing use of cryptocurrencies both in payments for illegal purposes and in concealing or laundering criminal proceeds.

The financial intelligence agency has developed a special crypto analysis service called “Transparent Blockchain”. It allows authorities to track crypto transfers and identify wallet owners. The Russian Interior Ministry already uses such a tool, as the head of its economic security department revealed this week.

Herman Neglyad also pointed out that the activities of platforms providing virtual asset exchange, transfer and storage services should be controlled through registration, licensing and supervision. He believes that these entities should be responsible for identifying customers and beneficial owners, storing data and reporting suspicious transactions to Rosfinmonitoring.

Do you think Russia will adopt strict regulations for its crypto market? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.