Full Ban on Crypto in Russia Would Be Counterproductive, Rosfinmonitoring Says

Russian citizens and businesses already ain cryptocurrencies, which is wherefore a implicit crypto prohibition would beryllium counterproductive, according to a apical enforcement of Rosfinmonitoring, Russia’s fiscal quality agency. At the aforesaid time, the regulator supports prohibiting payments with integer coins and their advertising.

Rosfinmonitoring Backs Government’s Strategy to Strictly Regulate Cryptocurrencies successful Russia

The Federal Financial Monitoring Service of the Russian Federation (Rosfinmonitoring) supports the adoption of strict rules for cryptocurrencies, arsenic per the regulatory conception approved by the government, the agency’s Deputy Director Herman Neglyad said successful an interrogation with Izvestia. However, the authoritative besides indicated to the Russian regular that a afloat prohibition is unlikely, elaborating:

We recognize that citizens and ineligible entities already ain integer currency and successful specified conditions, it would beryllium counterproductive to present a implicit prohibition connected the circulation of cryptocurrencies.

Neglyad explained that Russia’s fiscal watchdog favors proposals to prohibit settlements successful cryptocurrencies and their advertising, arsenic envisaged successful a bill submitted to the little location of Russian parliament successful November. It besides recognizes the request to rise consciousness astir the quality of cryptocurrency arsenic a high-risk asset.

“We judge that virtual assets oregon integer currencies should beryllium legally equated to property, which entails their designation arsenic the taxable of crimes,” the enforcement besides said. He added that Rosfinmonitoring has been seeing an expanding usage of cryptocurrencies some successful payments for amerciable purposes and concealment oregon laundering of transgression proceeds.

The fiscal quality bureau has been processing a peculiar crypto investigation work called “Transparent Blockchain.” It allows authorities to way crypto transfers and place wallet owners. Russia’s Interior Ministry is already utilizing specified a tool, arsenic the caput of its economical information section revealed this week.

Herman Neglyad besides emphasized that the activities of platforms providing exchange, transfer, and retention services for virtual assets should beryllium controlled done registration, licensing, and supervision. He believes these entities should beryllium liable for identifying clients and beneficial owners, storing information and reporting suspicious transactions to Rosfinmonitoring.

Do you deliberation Russia volition follow strict regulations for its crypto market? Share your thoughts connected the taxable successful the comments conception below.

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