A number of financial regulators in Russia have begun considering the introduction of various additional measures regarding the conversion of cryptocurrency to fiat via the involvement of banks. This decision was motivated primarily by the desire of German Neglyad, the deputy head of Rosfinmonitoring (Russia’s main service for monitoring financial transactions), to discover and eliminate money laundering schemes along with other undesirable and fraudulent activities which may be taking place.
Russia implements stricter regulations as critics consider this a move to eliminate Bitcoin
In accordance with the new proposed regulations, the government will now be able to track and follow the employment of proceeds generated through cryptocurrency following the aforementioned conversion to fiat. Although this may be beneficial for some, there are others who have complained that this move is actually a ploy to try and eliminate Bitcoin and other digital assets from the country altogether.
Should Rosfinmonitoring be allowed to continue with its plans, investors are concerned for the safety of their digital assets and tokens and may have to look elsewhere if they want to go about any business related to cryptocurrency.
Banks have been monitoring cryptocurrency proceeds already
German himself had confirmed that the banks have already been monitoring the crypto transactions and proceeds for some time now. He added that whenever the banks do observe a transaction taking place concerning the conversion of any digital asset into a fiat currency, they are required to file a report and submit it to Rosfinmonitoring. Additionally, Russia will be collaborating with foreign parties and individuals for the purposes of tracking and monitoring cross-border transactions. The reason given for doing this is so that potential terrorist activities are not supported through the use of Bitcoin or other digital assets.
The regulation had arrived just after a year following the legalization of cryptocurrencies by President Putin. This had been done through the introduction of a law which didn’t classify digital assets to act as legal tender. Simply put, individuals who do own cryptocurrency in Russia may hold on to their assets provided that they declare them alongside any physical assets that they may also possess. Lastly, the law dictates that banks will be required to open crypto exchanges, all of which will be under the direct supervision of the country’s central bank.