Russia’s Federal Financial Monitoring Service, or Rosfinmonitoring, the country’s anti-money laundering body, monitors cryptocurrencies against fiat transactions.
The federal executive body responsible for overseeing the fight against money laundering announced this on Tuesday in speeches to members of parliament, according to to the report of the Russian news agency Regnum.
At a meeting with members of the State Duma Financial Market Committee, Herman Neglyad, deputy head of Rosfinmonitoring, revealed that the thAML watchdog is cooperating with commercial banks in police crypto-fiat transactions, stating:
“Banks have already begun to pay attention to exchange operations, that is, when they see that after the exchange of virtual assets for hard currency, an operation has taken place, which they have begun to evaluate and actually inform us about these operations.”
According to another Rosfinmonitoring spokesman, AML and the central bank are developing a framework for monitoring suspicious cryptocurrency transactions.
As the federal executive, Rosfinmonitoring reports directly to Russian President Vladimir Putin. Indeed, the Agency’s statements before Parliament are following in the footsteps of President Putin, who calls on Rosfinmonitoring to pay special attention to to illegal cross-border transfers of cryptocurrencies.
The investigation into the nature of crypto-fiat transactions in Russia is only the latest in a series of stricter laws on cryptocurrencies in the country. Following a December 2020 decree signed by President Putin, public officials must declare their cryptocurrencies by June 30, 2021.
As Cointelegraph stated earlier, some public officials must sell their shares in the cryptocurrency until 1 April.
The main Russian crypto law passed in January 2020 created some legal basis for cryptocurrencies in the country. While virtual currency ownership is allowed in Russia, bitcoins (BTC) and other digital assets cannot be used as a medium of exchange, as the law recognized the ruble only as legal tender in the Russian Federation.
Already in February, the State Duma announced that it was considering a new legislative proposal, which it would introduce crypto taxation in the country.