Rosfinmonitoring is preparing strict measures: the crypto market awaits total identification and the Travel Rule
The Russian regulator is preparing fundamental changes to the rules for working with digital currencies. According to a statement by Vlada Korchagina, advisor to the director of Rosfinmonitoring, a new package of measures is aimed at strengthening control over crypto operations and bringing national legislation in line with international FATF standards.
New Requirements for Market Participants
The key innovation is mandatory full client identification for all new participants in the crypto market. Brokers and trust managers planning to work with cryptocurrencies and digital rights will be required to disclose data on beneficiaries and beneficial owners. At the same time, to reduce operational burden, crypto exchanges and depositories will be allowed to delegate identification functions to commercial banks and professional securities market participants.
Expansion of Mandatory Control
The list of operations subject to mandatory control will be expanded with five new categories related to cryptocurrencies. Simultaneously, the digital depository will be integrated into the system of information support for transfers. A crucial element is the implementation of the Travel Rule standard, which requires crypto transactions to be accompanied by end-to-end information about the sender and recipient. A similar mechanism is already in place in the European Union and most FATF jurisdictions.
Current Status and Prospects
Some requirements are already enshrined in current legislation. Federal Law No. 115-FZ classifies transactions with digital financial assets amounting to 1 million rubles or more as operations subject to mandatory control. Banks, brokers, and digital depositories have already been granted the right to block suspicious cryptocurrency transfers. Control over foreign trade operations, where digital rights are used as counter-performance, is separately stipulated.
The innovations will come into force after the adoption of the bill "On Digital Currency and Digital Rights," which has so far passed only the first reading. Korchagina emphasized that the initiative aims to "decriminalize" the market for cryptocurrencies and digital assets, as well as to prepare for the upcoming FATF evaluation.
Expert Commentary from Cryptalist: The introduction of strict identification measures and the Travel Rule is a logical step for Russia, which seeks to avoid being placed on the FATF "grey list." However, the key challenge for the market is not so much the adoption of laws, but the regulator's real ability to ensure effective oversight without undue pressure on bona fide participants. The flip side of "decriminalization" is the risk of some businesses moving into the shadows if the rules prove too burdensome for small and medium-sized players.