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Russia to improve monitoring of crypto transactions as regulation nears, says Rosfinmonitoring

Russia to improve monitoring of crypto transactions as regulation nears, says Rosfinmonitoring

Admin | Post Tuesday, 12 July 2022 - 11:58 AM | 81

Russia?s financial monitoring agency, Rosfinmonitoring, said on Friday it uses software to track cryptocurrency transactions and hopes to improve its capabilities, as Moscow ushers in regulations on what a lawmaker dubbed ?cryptomania.? ?.

The Bank of Russia has long expressed skepticism of cryptocurrencies, citing financial stability concerns, and advocated for a complete ban on trading and mining, in contradiction to a government keen to regulate cryptocurrencies. ?industry.

Russia has already identified specific criminal cases involving cryptocurrencies, Rosfinmonitoring chief Yuri Chikhanchin said, adding that the agency wants to improve its systems and identify transactions and blockchains that are currently hidden.

Chikhanchin said it?s not currently possible to cover everything, partly because not all countries are so keen on regulating the industry.

?It?s very difficult when cryptocurrency accounts enter the unregulated zone and we don?t understand who is on the other end,? he said. ?But I think we will still solve this task.?

The blockchain technology on which cryptocurrencies are based records transactions, but not the identity of wallet owners, making them difficult to track.

Anatoly Aksakov, head of the Russian parliament?s lower house finance committee, said on Thursday that a bill on cryptocurrency regulation would be presented to the house in the fall.

?Obviously there will be strict regulation,? Aksakov said, comparing ?cryptomania? to addiction in the gambling industry, which is tightly regulated in Russia.

?The same must be done with crypto exchanges and trading,? he said. ?The phenomenon exists and it cannot be ignored.?

The crypto industry has been in the crosshairs of regulators, who fear a recent volatile market meltdown could hit the wider financial sector.

The crisis ? sparked by the fall of two major tokens in May ? led crypto lender Celsius to suspend withdrawals and Singapore-based crypto hedge fund Three Arrows Capital went into liquidation.

Russia?s central bank has said it is open to allowing the use of cryptocurrencies for international settlements and has approved other digital asset transactions.

Aksakov also expects a cryptocurrency mining law to be considered soon, an area the government hopes to tax.

Unlike payment companies, most crypto exchanges initially rejected calls to cut off all Russian users, raising concerns among US lawmakers that digital assets could be used to evade Western sanctions against Moscow for its actions. shares in Ukraine.

Major exchanges have said they will comply with the sanctions by blocking sanctioned users. In April, Binance froze deposits and trades for Russian users with crypto assets over 10,000 EUR (roughly Rs. 8.08 lakh).