Home Cryptocurrency Russian Anti-Money Laundering Body Will Monitor Crypto to Fiat Transactions, Says Official

Russian Anti-Money Laundering Body Will Monitor Crypto to Fiat Transactions, Says Official

by Gordon James

Hermann Negliad, a representative of Russia’s anti-money laundering agency Rosfinmonitoring, said his organization would monitor transactions involving the conversion of crypto-currencies into fiat currencies. Mr. Negliad made this revelation at a recent meeting of the Duma’s Financial Markets Committee.

Banks are already in operation

As Russian news site Regnum reports, the anti-money laundering agency is already working with banks.

Banks have already started to pay attention to foreign exchange transactions. That is, if they see that the transaction took place after the exchange of virtual assets into currency, they have already started to evaluate them and inform us about these transactions, Negliad said.

The head of Rosfinmonitoring adds that his organization, in collaboration with the country’s central bank, will introduce a separate code that will mark a distinct group of such suspicious transactions, i.e. to further alert traditional financial institutions to this problem.

Negliad’s comments about Russia’s intention to monitor cryptocurrency transactions follow recent remarks by the country’s president, Vladimir Putin. According to Bitcoin.com News, President Putin has expressed concern over what he calls illegal cross-border transfers of cryptocurrencies. The Russian leader added that criminal elements are increasingly using these digital financial assets, justifying stricter controls.

Russia wants to regulate cryptocurrencies

In recent years, the Russian nation-state has sought to regulate the use of cryptocurrencies in the country. In September 2020, the country proposed harsh penalties for those who fail to report the existence of cryptovaluta reserves above a certain threshold. In February 2021, Bitcoin.com News reported that a bill to recognize cryptocurrencies as property had made progress in the Russian parliament.

At the same time, it is unclear whether Mr. Negliad’s comments are related to President Putin’s earlier remarks. However, Regnum’s report shows that the Duma committee meeting at which Neglyad spoke was held in preparation for the Russian government’s report.

What is your opinion on Rosfinmonitoring’s proposal to monitor cryptocurrencies? You can share your thoughts below in the comments section.

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