Russia’s central bank and Rosfinmonitoring are testing a novel system to follow the trails linking cryptocurrency transactions with traditional banking operations.
Together, the Bank of Russia and Rosfinmonitoring, Russia’s primary financial intelligence agency, are developing a system to identify links between traditional banking activities and cryptocurrency transactions. This initiative aims to provide insights into the scope of Russia’s crypto market.
Based on an RBC report, Ilya Bushmelev, the project portfolio management director at “Innotech,” disclosed during a Rosfinmonitoring-hosted forum that the platform is presently undergoing unnamed pilot tests with five banks.
Based on the findings from the pilot, it is recommended that financial lenders familiarize themselves with the essential steps and resources for ensuring compliance with cryptocurrency regulations. (Ilya Bushmelev)
According to Bushmelev’s announcement, the crypto compliance pilot program, set to end in May, could be prolonged depending on its results. The goal is to help financial institutions develop a solid base of knowledge regarding crypto regulations, such as identifying crypto clients and transactions. However, it remains undecided if the pilot yielded favorable outcomes.
Russia’s most recent move is an extension of their continued attempts to manage the intricacies of the cryptocurrency market. In October 2023, Russian legislator Anton Tkachev disclosed that a Russian bank had begun monitoring its clients’ crypto transactions as part of the administration’s endeavor to create guidelines for state-owned entities engaging in the industry. Nonetheless, no official reports regarding the results of this trial have been made public yet.
During this period, American and British authorities have been examining cryptocurrency transactions for any links to Russia. It’s estimated that over $20 billion worth of transactions may have gone through the Russian crypto exchange, Garantex, which has been sanctioned. However, it’s uncertain if the Russian central bank and Rosfinmonitoring are solely focusing on Garantex-related transactions or aiming to detect all cryptocurrency activity within the conventional financial system.
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2024-04-25 12:51