Rosfinmonitoring is preparing shock therapy for the crypto market: full identification and the Travel Rule become mandatory
The Russian regulator is preparing fundamental changes to the rules for the circulation of digital currencies. According to my analysis, the new measures are aimed at total tightening of control and complete elimination of anonymity in the market.
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. This is a serious blow to the shadow sector.
To reduce operational burden, crypto exchanges and depositories will be allowed to delegate identification functions to commercial banks and professional securities market participants. In my opinion, this measure will accelerate the integration of the crypto industry into the traditional financial system.
Expansion of Mandatory Control and Implementation of the Travel Rule
The list of controlled operations will be expanded with five new types related to cryptocurrency. The digital depository is planned to be integrated into the transfer information support system. The most significant change is the implementation of the Travel Rule standard. Now, each crypto transaction will be accompanied by end-to-end information about the sender and recipient. Similar requirements are already in effect in the EU and most FATF jurisdictions.
Some norms are already enshrined in legislation. The current version of Federal Law 115 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 cryptocurrency transfers. Separate control is prescribed for foreign trade operations where digital rights are used as counter-performance.
The necessity of these initiatives is directly linked to the upcoming FATF assessment. Russia must bring its AML system into compliance with international recommendations. As emphasized, the measures are intended to "decriminalize" the market for cryptocurrencies and digital assets.
The innovations will take effect after the adoption of the draft law "On Digital Currency and Digital Rights," which has so far only passed its first reading. Considering the updated FATF Assessment Methodology, the focus of global inspections has shifted to the real effectiveness of law enforcement. Now, it is not enough for countries to simply pass laws—they must demonstrate strict oversight of the industry and enforcement of the Travel Rule to avoid being placed on the "gray list."
My expert assessment: The market is on the verge of tectonic shifts. Full identification and the Travel Rule will effectively destroy P2P exchanges and gray schemes. For legal players, this will create a clean environment, but in the short term, we will see an outflow of liquidity to unregulated jurisdictions. The key question is how effectively the regulator will be able to control the enforcement of the new norms in practice.