Rosfinmonitoring introduces strict rules for crypto business: full identification and Travel Rule
The digital asset market in Russia is preparing for a major transformation. Rosfinmonitoring has announced a package of amendments aimed at total tightening of control over cryptocurrency transactions. This is not just about formal changes, but about a fundamental restructuring of the rules of the game for all industry participants.
The key innovation is mandatory full client identification for all new entrants to the crypto market. Brokers and trust managers wishing to work with cryptocurrencies and digital rights are now required to disclose not only their clients' data, but also information about beneficiaries and ultimate beneficial owners. This is a serious step towards transparency that will hit anonymous schemes.
To reduce the administrative burden on crypto exchanges and depositories, a mechanism for delegating identification functions to commercial banks and professional securities market participants is provided. However, this is not a simplification, but rather a shifting of responsibility to a more regulated sector.
The most significant block of changes is the expansion of the list of transactions subject to mandatory control. It includes five new types of crypto transactions. In parallel, the digital depository will be integrated into the system of information support for transfers. This means total monitoring of fund movements.
The implementation of the Travel Rule standard becomes mandatory. Now each crypto transaction must be accompanied by end-to-end information about the sender and recipient. This is a direct analogue of requirements already in force in the EU and most FATF jurisdictions. In effect, anonymous transfers between wallets become impossible.
It is important to note that some of these norms are already enshrined in current legislation (Federal Law No. 115). In particular, transactions with digital financial assets worth 1 million rubles or more are already under special control. Banks, brokers, and digital depositories receive the right to block suspicious cryptocurrency transfers. Control over foreign trade operations using digital rights is separately stipulated.
The need for such stringent measures is directly related to the upcoming FATF assessment. Russia seeks to bring its AML system in line with international standards to avoid being placed on the "grey list." As stated by Vladа Korchagina, Advisor to the Director of Rosfinmonitoring, the goal is to "decriminalize" the cryptocurrency 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. However, the direction of movement is clear: the era of spontaneous and anonymous crypto exchange in Russia is coming to an end.
Cryptalist analyst opinion: The market faces inevitable consolidation. Small and medium-sized exchanges, unprepared for strict compliance, will go underground or close down. Large players, on the contrary, will gain a legal field for operation. In the long term, this is a positive signal for institutional investors, but in the short term, we will see an increase in service costs for end users and a decrease in liquidity on the P2P market.