Rosfinmonitoring tightens the screws: new identification standard and Travel Rule for the crypto market
The digital asset market in Russia is preparing for a major transformation. Rosfinmonitoring has announced a package of amendments aimed at tightening control over cryptocurrency circulation. These measures are not just a bureaucratic formality, but a direct preparation for an upcoming inspection by the FATF, where the effectiveness of law enforcement is now prioritized over the formal existence of laws.
Full Transparency for Crypto Businesses
The key innovation is mandatory full client identification for new market participants. Brokers and trust managers operating with cryptocurrencies and digital rights will be required to disclose not only their clients' data but also information about ultimate beneficiaries and beneficial owners. This effectively puts an end to anonymity in the professional segment. To reduce administrative burden, the bill will allow exchanges and depositories to delegate identification functions to commercial banks and professional securities market participants.
Travel Rule and Expansion of the List of Controlled Operations
The most significant step is the full implementation of the Travel Rule standard. Now, every crypto transaction will be accompanied by end-to-end information about the sender and recipient, fully harmonizing Russian regulation with the approaches of the EU and most FATF jurisdictions. Simultaneously, the list of operations subject to mandatory control will be expanded with five new types related to digital currencies. Let me remind you that the current version of Federal Law No. 115-FZ already classifies transactions with digital financial assets (DFAs) amounting to 1 million rubles or more as such operations.
Right to Block and Foreign Trade Control
Banks, brokers, and digital depositories will receive a tool to block suspicious cryptocurrency transfers. A separate mechanism is outlined for controlling foreign trade operations where digital rights are used as counter-performance. The digital depository, in turn, is planned to be integrated into a unified system for information support of transfers, creating a seamless tracking chain.
My analysis: The entry into force of these norms after the adoption of the law "On Digital Currency and Digital Rights" (which has so far passed only the first reading) means that the market faces a period of turbulence. For legitimate players, this is a long-awaited legalization and clear rules of the game. However, for the gray and black segments, an era of total transparency is beginning. Russia is demonstrating its readiness to play by strict international standards, and the price for this is the complete disappearance of anonymity in the legal circulation of cryptocurrencies.