Digital asset exchanges should be required to provide user information to Russia’s law enforcement agencies, the country’s Attorney General has insisted. The circulation of cryptocurrencies in the Russian Federation must be regulated to counter money laundering, the official added.
Cryptocurrency exchanges must report to Russian authorities, says chief prosecutor
Crypto service providers should be required to register in Russia and force exchanges to share information about their users with Russian security services, according to the head of the nation’s Attorney General’s Office, Igor Krasnov.
He also believes that simply granting cryptocurrency ownership status under Russian law is not enough to fight the legalization of criminal proceeds. Krasnov urged regulation of it to address the challenges posed by its use for illicit purposes.
Quoted by the magazine “Financial Security” published by the Russian financial watchdog, rosfinmonitoringThe senior prosecutor further explained that the difficult geopolitical situation increases the risks of exploiting vulnerabilities associated with digital assets.
Igor Krasnov also called for adding cryptocurrencies to Russian criminal law, including recognizing that they can be the subject of crimes and intrusions, as well as establishing procedures for their seizure, storage, and confiscation by the state.
Crypto assets and related transactions have yet to be comprehensively regulated in Russia, where lawmakers and other officials are still considering their approach. Most government institutions favor a restrictive regime that prevents their free circulation while legalizing some activities such as mining, as well as payments in cross-border transactions and trade under special legal regimes.
A bill on crypto mining is still under review in the State Duma, the lower house of the Russian parliament. Reports revealed last month that lawmakers are considering introducing criminal liability for miners who evade taxes and fail to report their digital assets to the government.
The proposal, which originated from the Finance Ministry, prompted 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 regulations.
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