Digital asset exchanges must be obligated to provide user information to Russian law enforcement agencies, the country’s attorney general asserted. The distribution of cryptocurrencies in the Russian Federation must also be regulated to combat money laundering, the prosecutor general added.
Cryptocurrency Exchanges Must Report to Russian Authorities, Chief Prosecutor Says
Igor Krasnov, head of the Russian Prosecutor General’s Office, said that crypto service providers should be required to register in Russia and exchanges should be required to share information about their users with Russian security services.
He also believes that simply giving cryptocurrencies property status under Russian law is not enough to combat the legalization of criminal proceeds; Krasnov urged their regulation to address the challenges posed by their use for illicit purposes.
Quoting from the “Financial Security” magazine published by the Russian financial watchdog.RosfinmonitoringMoreover, the senior prosecutor explained that the difficult geopolitical situation has increased the risk of exploitation of vulnerabilities associated with digital assets.
Igor Krasnov also called for the addition of cryptocurrencies to Russia’s criminal code, including recognizing that cryptocurrencies can be the subject of crimes and infringements and establishing procedures for their seizure, storage, and confiscation by the state.
Crypto assets and related transactions are not yet comprehensively regulated in Russia, and lawmakers and other officials are considering their approach. Most government agencies support a restrictive regime that prevents free circulation, but legalizes some activities, such as mining and payments in cross-border payments and transactions, under a special legal regime.
A bill on crypto mining is still being considered in the State Duma, the lower house of the Russian parliament. Last month, reports revealed that lawmakers were considering introducing criminal liability for miners who evade taxation and fail to report their holdings of digital assets to the government.
The proposal originated from the Ministry of Finance, which provoked a backlash from the Russian Crypto Industry Association, which called for clarification and warned that Russia could fall behind other countries if Moscow maintains its tough stance on crypto regulation.
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