Russia Crypto Regulation Tightens as Moscow’s AML Agency Declares Crypto Isn’t Private

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As crypto continues to grow worldwide, Russia is tightening its grip on how it’s used and tracked. From banning USDT to nabbing illegal crypto mining in the country, they are making sure that crypto is safe from scams. The country’s anti-money laundering agency, Rosfinmonitoring, has made it clear to the Russian citizens that crypto transactions in the country are no longer as private as people think. Despite crypto exchanges having no legal recognition in the country, they’re already handing over customer data to law enforcement, with no need for a court order. 

Crypto Anonymity Is a “Myth,” Says Official

Speaking at the St. Petersburg International Legal Forum, Olga Tisen, Rosfinmonitoring’s legal head, said that Russian crypto exchanges are actively sharing wallet owner data with authorities upon request. She emphasized that the idea of crypto transactions being anonymous is outdated, especially as these platforms aim to align with future regulations.

No Court Order? No Problem

Tisen says crypto data in Russia isn’t protected like bank information, so the police can get their hands on it pretty easily, no court order needed. Some exchanges even mention on their websites that they’re working with law enforcement, which might sound surprising, but it actually lines up with global anti-money laundering standards. Even though crypto still operates in a bit of a legal gray area in Russia, these platforms seem to be playing it safe and following stricter rules ahead of time.

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Meanwhile, the Russian government is gearing up to keep an even closer eye on things. Rosfinmonitoring, the country’s financial watchdog, plans to give banks access to a blockchain tracking tool called Transparent Blockchain before the year ends. It’s already being used by police and even agencies outside Russia to track crypto transactions. Moreover, the Central Bank is using it too, to keep tabs on how often Russians are checking out big international crypto exchanges online.

The Bigger Picture

Over 12,000 regulators and officers across Russia and neighboring countries have access to this blockchain tracking tool. The agency is also pushing for stricter rules around illegal crypto mining, with strong backing from the Central Bank.

While Russia may not have fully regulated the crypto space, it’s already watching closely, and user privacy is quickly becoming a thing of the past.