Rosfinmonitoring is preparing a new wave of cryptocurrency market regulation: full identification and Travel Rule
The digital asset market in Russia is facing another stage of tightening control. Rosfinmonitoring has announced extensive amendments to legislation that will fundamentally change the rules of the game for crypto industry participants. The key goal is not merely formal compliance with international FATF standards, but the actual elimination of shadow operations from the circulation of digital currencies.
Mandatory identification for all new players
According to the new approach, any organizations planning to enter the crypto market — whether brokers, trust managers, or exchangers — will be required to conduct full identification of their clients. This includes not only disclosing the user's identity but also data on ultimate beneficiaries and beneficial owners. To reduce the administrative burden, the bill provides for the option of delegating these functions to commercial banks and professional securities market participants.
Expansion of the list of controlled operations
The list of operations subject to mandatory control will be expanded by five new categories directly related to cryptocurrency transactions. Additionally, the digital depository will be integrated into a unified system for information support of transfers. This means that every crypto transaction must now be accompanied by end-to-end data on the sender and recipient — the so-called Travel Rule, which has already become a standard in the EU and most FATF jurisdictions.
A new level of control and consequences
The current version of Federal Law No. 115 already classifies transactions with digital financial assets amounting to 1 million rubles or more as operations subject to mandatory control. However, the new amendments will give banks, brokers, and digital depositories the right to block suspicious cryptocurrency transfers, as well as strengthen control over foreign trade operations using digital rights. According to agency representatives, these measures are aimed at the "decriminalization" of the market.
The bill "On Digital Currency and Digital Rights," which underlies these changes, has so far only passed its first reading. However, its adoption will be a turning point: Russia is moving from formal regulation to actual enforcement. As the updated FATF assessment methodology shows, countries are now required not just to pass laws but to demonstrate strict oversight of the crypto industry in practice.
My analysis: It is clear that the Russian regulator has set a course for full transparency of the crypto market, copying the strictest EU practices. For bona fide participants, this will create additional bureaucratic barriers but will simultaneously legitimize their activities. However, the main question remains open: will this approach truly eradicate shadow turnover, or will it merely push part of the market into an even deeper "gray" sector?