Tightening control over cryptocurrencies in Russia: Rosfinmonitoring prepares new rules of the game
The digital asset market in Russia is on the verge of large-scale regulatory changes. Rosfinmonitoring has announced a set of measures aimed at strengthening control over the circulation of cryptocurrencies. This is not just a formality, but a strategic step that will reshape the entire ecosystem of interaction with digital money in the country.
The key innovation is mandatory full client identification for new participants in the crypto market. Brokers, asset managers, and anyone planning to work with cryptocurrencies and digital rights will now be required to disclose data on beneficiaries and ultimate beneficial owners. To reduce operational burden, crypto exchanges and depositories will be allowed to delegate these functions to commercial banks and professional securities market participants. This is a pragmatic solution that avoids creating excessive bureaucracy and instead integrates the crypto industry into the existing financial infrastructure.
Expansion of Mandatory Control and the Travel Rule
The list of transactions subject to mandatory control will be expanded with five new types directly related to cryptocurrency. At the same time, the digital depository is planned to be integrated into the system of information support for transfers. This means that all crypto transactions will be accompanied by end-to-end information about the sender and recipient — the so-called Travel Rule principle. A similar standard is already in effect in the EU and most FATF jurisdictions, so Russia is synchronizing with global trends.
Some requirements are already enshrined in legislation. The current version of Federal Law No. 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 have the ability to block suspicious cryptocurrency transfers. Separate provisions regulate foreign trade operations where digital rights are used as counter-performance.
Why is this happening now?
The need for this initiative is directly linked to the upcoming assessment of the Russian AML system by the FATF. According to representatives of the agency, the measures are aimed at the "decriminalization" of the cryptocurrency and digital asset market. According to the updated FATF Methodology for assessing technical compliance, which has already entered into force, the focus of global checks has shifted to the actual effectiveness of law enforcement. Countries are now not only required to adopt laws for the crypto market but must also demonstrate strict oversight of the industry and enforcement of the Travel Rule in practice to avoid being placed on the "grey list."
The innovations will come into force after the adoption of the bill "On Digital Currency and Digital Rights." At this stage, it has only passed the first reading.
My analysis: This is not just a tightening of rules, but an attempt to create a legal yet controlled space for cryptocurrencies in Russia. For bona fide market participants, this is a chance to operate transparently within the law. However, for those accustomed to anonymity, this market will become far less hospitable. The question remains how flexible the enforcement mechanisms will be and whether they will stifle innovation in its infancy.