Russia tightens control over cryptocurrencies: new rules for market participants
Rosfinmonitoring has announced significant changes in the regulation of digital currency circulation. These measures are aimed at strengthening control over crypto operations and bringing the Russian anti-money laundering (AML) system in line with international standards, primarily the FATF recommendations.
New Identification Requirements
The key innovation is mandatory full client identification for new participants in the crypto market. This refers to brokers, trust managers, and other intermediaries working with cryptocurrencies and digital rights. They will have to disclose data on beneficiaries and beneficial owners. To reduce operational burden, crypto exchanges and depositories will be allowed to transfer identification functions to commercial banks and professional securities market participants.
Expansion of Mandatory Control and Travel Rule
It is planned to expand the list of operations subject to mandatory control by adding five new types related to cryptocurrency. Additionally, the digital depository will be integrated into the information support system for transfers. This is directly related to the implementation of the Travel Rule standard: each crypto transaction will be accompanied by end-to-end information about the sender and recipient. Similar rules already apply in the European Union and most FATF jurisdictions.
Practical Implications and Timelines
Some requirements are already enshrined in legislation. For example, the current version of Federal Law 115 classifies transactions with digital financial assets worth 1 million rubles or more as operations subject to mandatory control. Banks, brokers, and digital depositories will be able to block suspicious cryptocurrency transfers. Separate control is prescribed for foreign trade operations where digital rights are used as counter-performance.
The innovations will come into force after the adoption of the draft law "On Digital Currency and Digital Rights," which has so far passed only the first reading. According to representatives of Rosfinmonitoring, these measures are aimed at "decriminalizing" the cryptocurrency and digital asset market, as well as preparing for the upcoming FATF evaluation. It is important to note that under the updated FATF Assessment Methodology, the focus has shifted to the real effectiveness of law enforcement. Now it is not enough for countries to simply adopt laws — they must demonstrate strict oversight of the industry in practice.
Expert commentary: Tightening control is a logical step for Russia seeking to avoid being placed on the FATF "grey list." However, for the market, this means increased operational costs and stronger regulatory pressure. In the short term, this could lead to an outflow of some business to unregulated jurisdictions or the shadow sector. In the long term, it could lead to the formation of a more transparent and secure ecosystem, which ultimately benefits all bona fide participants.