Rosfinmonitoring is preparing a total cleanup of the crypto market: new identification and control rules
The Russian regulator, represented by Rosfinmonitoring, has announced a large-scale tightening of rules for participants in the cryptocurrency market. This concerns amendments that will radically change the rules of the game for brokers, trust managers, and exchangers working with digital assets.
Full Transparency: Identification and Beneficiaries
The key innovation is mandatory full identification of clients for all new players in the crypto market. Now, brokers and trust managers wishing to legally work with Bitcoin, Ethereum, and other cryptocurrencies, as well as digital rights, will be required to disclose data not only about the clients themselves but also about ultimate beneficiaries and beneficial owners. This is a direct blow to anonymity, which has long been considered one of the main features of the crypto industry.
Reducing Burden and Expanding Control
To avoid paralyzing the operation of legal services, the regulator has provided a delegation mechanism. Crypto exchangers and depositories will be allowed to transfer identification functions to commercial banks and professional securities market participants. However, at the same time, an expanded list of transactions subject to mandatory control is being introduced. Five new types of transactions directly related to cryptocurrencies will be added to it.
Travel Rule Russian-Style: End-to-End Transfer Control
The most significant change is the implementation of the Travel Rule principle. Each crypto transaction will now be accompanied by end-to-end information about the sender and recipient. This means that anonymous transfers between wallets not linked to identified individuals will effectively be outlawed. Similar standards are already in place in the EU and most FATF jurisdictions, and Russia aims to synchronize its regulatory framework with international requirements.
Practical Implications and Timelines
Already now, under the current Federal Law No. 115, transactions with digital financial assets worth 1 million rubles or more fall under mandatory control. Banks, brokers, and digital depositories will have the right to block suspicious cryptocurrency transfers. Control over foreign trade operations using digital rights is separately stipulated.
Advisor to the Director of Rosfinmonitoring, Vlada Korchagina, directly linked this initiative to the need to "decriminalize" the market and bring the Russian AML system into compliance with FATF recommendations ahead of the upcoming assessment. The innovations will come into force only after the adoption of the draft law "On Digital Currency and Digital Rights," which has so far passed only its first reading.
My analysis: This is not just a tightening—it is a fundamental restructuring of the Russian crypto ecosystem. The regulator is essentially stating: "Anonymity in cryptocurrencies is a thing of the past." The new rules, if adopted, will create a high entry barrier for small players and P2P exchangers, but at the same time, they will grant legal status to large, transparent services. The market faces a period of turbulence, but in the long term, this could lead to consolidation and increased trust from institutional investors. However, the main risk is the potential displacement of some operations into the illegal sector if control becomes excessively strict.