Russia tightens control over cryptocurrencies: new rules for market participants
Rosfinmonitoring is preparing large-scale changes in the regulation of digital currency circulation, which will significantly impact the operations of all cryptocurrency market participants. The initiative aims to bring Russian legislation in line with international FATF standards and strengthen the fight against money laundering.
New Identification Requirements
The key innovation is mandatory full client identification for all new cryptocurrency market participants. Brokers, trustees, and other intermediaries working with cryptocurrencies and digital rights will be required to disclose data on beneficiaries and beneficial owners. To reduce operational burden, crypto exchanges and depositories will be allowed to delegate identification functions to commercial banks and professional securities market participants.
Expansion of Mandatory Control
Five new types of cryptocurrency-related operations will be added to the list of mandatory control. The digital depository is planned to be integrated into the information support system for transfers. In compliance with the Travel Rule, all crypto transactions will be accompanied by end-to-end information about the sender and recipient — a similar standard is already in effect in the EU and most FATF jurisdictions.
The current version of Federal Law No. 115 already classifies transactions with digital financial assets worth 1 million rubles or more as operations subject to mandatory control. Banks, brokers, and digital depositories will have the ability to block suspicious cryptocurrency transfers. Separate control is stipulated for foreign trade operations where digital rights are used as counter-performance.
Timelines and Prospects
The innovations will take effect after the adoption of the draft law "On Digital Currency and Digital Rights," which has currently passed only the first reading. The need for this initiative is linked to aligning the Russian AML system with FATF recommendations ahead of the upcoming assessment. According to agency representatives, the measures are intended to "decriminalize" the cryptocurrency and digital asset market.
It is worth noting that the updated FATF Assessment Methodology has already come into force, and the focus of global inspections has now shifted to the actual effectiveness of law enforcement. Countries are no longer required merely to adopt laws for the crypto market — they must demonstrate strict oversight of the industry and enforcement of the Travel Rule in practice to avoid being placed on the "grey list."
Expert commentary: Tightening control is a logical step within the global trend. However, the key challenge for the Russian market is maintaining a balance between regulation and innovation. Excessive pressure could trigger an outflow of crypto assets into the shadow sector or abroad, which contradicts the stated goal of decriminalization.