Rosfinmonitoring is preparing a new wave of regulation: the crypto market awaits total identification
The digital currency market in Russia is on the verge of large-scale regulatory changes. Rosfinmonitoring has announced a set of measures aimed at tightening control over crypto transactions. The focus is on full transparency of transactions and identification of all participants in the process.
New requirements for market participants
The key innovation will affect companies that plan to work professionally with cryptocurrencies and digital rights. Brokers and trust managers are now required to conduct full client identification, as well as disclose information about ultimate beneficiaries and beneficial owners. This is a serious step towards de-anonymizing a sector that has long remained a "gray area."
To reduce the administrative burden on small players, the possibility of transferring identification functions to commercial banks and professional securities market participants is provided. This approach allows maintaining flexibility for exchangers and depositories while tightening overall control.
Expansion of mandatory control and the Travel Rule
The list of transactions subject to mandatory monitoring will be expanded by five new types related to cryptocurrency. Additionally, the digital depository is planned to be integrated into the system of information support for transfers. This means that each crypto transaction will be accompanied by end-to-end information about the sender and recipient — in full compliance with the international Travel Rule standard, which is already actively applied in the EU and most FATF jurisdictions.
Current legislation 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 receive the right to block suspicious transfers. Control over foreign trade operations where digital rights are used as counter-performance is separately specified.
Why is this happening now?
The need for the initiative is directly related to the upcoming assessment of the Russian AML system by the FATF. As the agency emphasizes, the goal is to "decriminalize" the cryptocurrency and digital asset market. However, in practice, this means a transition from the formal existence of laws to real strict oversight. Countries that fail to demonstrate effective law enforcement risk being placed on the FATF "gray list."
The innovations will only come into force after the adoption of the draft law "On Digital Currency and Digital Rights," which has so far passed only its first reading. This gives the market time to adapt, but the scale of the upcoming changes should not be underestimated.
Expert opinion: The market is moving towards full transparency, and this is inevitable. However, the key question is how the new rules will affect liquidity and the activity of retail traders. If the regulator fails to find a balance between control and freedom, we risk seeing a capital outflow to more favorable jurisdictions. For now, the stakes are high for both the state and market participants.