Rosfinmonitoring is preparing a total cleanup of the crypto market: new identification rules and the Travel Rule
Rosfinmonitoring has announced a large-scale tightening of the rules of the game on the Russian cryptocurrency market. This involves the introduction of mandatory full identification for all new participants wishing to legally work with digital assets. This will affect not only classic exchangers, but also brokers, as well as trust managers who plan to operate cryptocurrencies and digital rights.
Key Changes: From Identification to the Travel Rule
The first and most important innovation is the requirement to disclose all beneficiaries and ultimate beneficial owners. To reduce the operational burden on crypto services, they will be allowed to transfer identification functions to commercial banks and professional securities market participants. This essentially creates a bridge between traditional finance and the crypto industry, but with strict state control.
The second set of measures concerns expanding the list of transactions subject to mandatory control. Five new types of transactions related to cryptocurrency will be added to it. In parallel, the integration of a digital depository into the transaction information support system is planned. This means that each crypto transaction will be accompanied by end-to-end information about the sender and recipient — a standard known as the Travel Rule. Similar requirements are already in effect in the EU and most FATF jurisdictions.
Practical Implications and Timelines
Some requirements are already enshrined in legislation: transactions with digital financial assets worth 1 million rubles or more are subject to mandatory control. Banks, brokers, and digital depositories will have the right to block suspicious cryptocurrency transfers. Control over foreign trade operations where digital rights are used as consideration is separately stipulated.
The agency links the need for these measures to bringing the Russian AML system into compliance with FATF recommendations ahead of the upcoming assessment. As stated by Vlad Korchagina, Advisor to the Director of Rosfinmonitoring, the goal is to "decriminalize" the cryptocurrency and digital asset market. However, in practice, this means a transition from semi-legal circulation to a fully controlled system.
The innovations will only come into force after the adoption of the draft law "On Digital Currency and Digital Rights," which has so far passed only its first reading. The industry has virtually no time to adapt.
My analysis: This is not just a tightening, but a fundamental restructuring of the entire ecosystem. If previously crypto exchangers operated in a "gray" zone, they will now either be forced into the legal field with full control or pushed into the shadow sector. For bona fide market participants, this means increased compliance costs, but also greater trust from institutional investors. However, the main risk is pressure on decentralized protocols, which technically cannot fulfill identification requirements. The question is how exactly the new rules will be interpreted for the DeFi sector.