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Russia’s Anti Money Laundering Body Is Monitoring Crypto to Ruble Transactions

Rosfinmonitoring, also known as Russia’s Federal Financial Monitoring service is closely monitoring crypto to paper transactions. This agency is Russia’s anti-money laundering firm. Regnum, one of Russia’s news agency reports that the federal executive council in charge of anti-money laundering activities made this disclosure during an address to parliamentary members yesterday.

What Rosfinmonitoring Have Been Deployed to do

Herman Neglyad, the assistant head of the anti-money laundering firm revealed to the Duma state committee members on financial market that the agency is collaborating with financial institutions to properly monitor all crypto-ruble transactions. He was quoted as saying, “banks are already on the lookout for exchange operations. All transactions that involved the exchange of cryptocurrencies with physical cash are probed critically and any suspicious ones are reported to the establishment.”

The agency’s vice-chair further remarked plans to have a special tag for suspicious crypto-to-ruble transfers. During his interview with TASS, one of the country’s news agencies, Neglyad also said criminals in Russia often use BTC, ETH, and Monero (XMR) for their illicit financial activities, especially in terrorism financing. He further said that they established this fact because they worked in conjunction with other countries’ AML firms.

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Another representative of the agency who’d rather remain anonymous disclosed that the firm is creating a model with the central bank to monitor and identify crypto-to-fiat currency transfers. Since Rosfinmonitoring is a Federal executive firm, they are only answerable to the country’s president.

The firm’s comments before parliament were one of the current president’s recommendations in which he urged the federal financial monitoring service to identify illicit cross-border crypto transactions. Last year, the agency revealed that it has begun the process of creating its blockchain transaction tracing tool to identify final recipients of crypto transfers.

More Restrictions On Crypto Transfers in Russia

This new move by the government to investigate crypto-to-ruble transfers is part of their ongoing moves to enforce crypto laws in Russia. President Putin had made a decree in the last month of last year that all public office holders must make a public declaration of their holdings on or before the end of the middle of this year. Based on this development, some public office holders have started preparing to sell their crypto assets beginning next month. However, Russia’s political and civil elites are starting to use bitcoin and other crypto-assets as a fundraising tool. At the beginning of last year, Russia legislated crypto regulations which formed the basis of crypto ownership and trading in the country.

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These crypto laws prohibit the use of crypto assets as a medium of exchange in Russia. However, it is perfectly legal to own any digital assets. The ruble is the only legally accepted medium of exchange across the country. Last month, the Duma state disclosed that it would propose new legislation which (if adopted) will lead to the introduction of crypto taxation in the state and all over the country. Only time will the ramifications of these crypto tax law on the fledgling crypto industry in the country.

Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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