Russia tightens the rules of the game in the crypto market: a new round of control from Rosfinmonitoring
The Russian regulator, represented by Rosfinmonitoring, is preparing fundamental changes in its approach to controlling digital currencies. New rules, announced by the agency's advisor Vlada Korchagina, aim to bring the cryptocurrency market out of the "gray" zone and integrate it into the strict framework of financial monitoring.
Full Identification and Burden of Proof
The key innovation is mandatory full identification of clients for new market participants. This concerns brokers and trustees working with cryptocurrencies and digital rights. They will have to disclose not only their clients' data but also information about beneficiaries and ultimate beneficial owners. To reduce the administrative burden on crypto exchanges and depositories, they will be allowed to delegate this function to commercial banks and professional securities market participants.
Expansion of the "Red Zone": Five New Operations Under Control
The list of operations subject to mandatory control will be expanded by five new items related to cryptocurrency. This means that any suspicious activity will automatically fall under the regulator's scrutiny. Simultaneously, the digital depository is planned to be integrated into a unified system for information support of transfers.
Travel Rule Russian-Style: End-to-End Transaction Control
Special attention is given to implementing the Travel Rule standard. Now, each crypto transaction must be accompanied by end-to-end information about the sender and recipient. This standard is already mandatory in the EU and most jurisdictions following FATF recommendations. Russia, therefore, seeks to synchronize its practices with global norms.
It is important to note that some of these requirements are already enshrined in current legislation. For example, transactions with digital financial assets amounting to 1 million rubles or more are already subject to mandatory control. Banks, brokers, and digital depositories receive the right to block suspicious cryptocurrency transfers. Control over foreign trade operations, where digital rights are used as counter-performance, is also separately stipulated.
The necessity of these initiatives is directly linked to the upcoming assessment of the Russian AML system by the FATF. As Korchagina emphasized, the goal is to "decriminalize" the cryptocurrency and digital asset market. The innovations will only come into force after the adoption of the draft law "On Digital Currency and Digital Rights," which has so far only passed its first reading.
Cryptalist Analysis: This is not just a tightening of rules—it is an attempt to create a full-fledged, transparent infrastructure for legitimate crypto business in Russia. However, the key question lies not in the laws themselves, but in their enforcement. As the updated FATF methodology shows, the focus has shifted to the real effectiveness of supervision. If Russia can demonstrate strict control and enforcement of the Travel Rule in practice, rather than on paper, it may avoid being placed on the "gray list." Otherwise, we will only see formal tightening that will not solve the problem of shadow turnover but will merely drive out honest players.