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Rosfinmonitoring Will Manage Cryptocurrency Regulation in Russia

Russian federal financial authority Rosfinmonitoring (RFM) is ready to comply with long-awaited domestic Financial Action Task Force (FATF) rules to fight money laundering on the web. RFM officials will oversee and register ICO startups, exchanges, crypto services, and even blockchain wallet operators.

Also see: Hyperledger Fabric Can Now Launch Ethereum Smart Contracts

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The Unregulated Crypto Delusion

On October 29th, RFM Deputy Head Pavel Livadny noted in remarks to the press that “necessary” cryptocurrency-centric changes to the FATF laws will be added soon.

Livadny said that control over the domestic cryptoeconomy would increase investor protections, as well as the transparency of the whole industry. He cast the shift as a bid to “return trust.”

“Returning trust” to the “trustless.”

Bitsonline previously reported that cryptocurrencies were originally set to be excluded from FATF’s coming virtual economy rules. Now, officials are signaling that they will in fact use the coming legislation to formalize monitoring on Russian cryptocurrency users and enterprises.

With FATF Prescriptions, Registrations and Investigations Come Front and Center

Livadny added that FATF would introduce intensified licensing measures, i.e. the registration and accounting of all crypto-related businesses.

Furthermore, he said transfers worth more than 600,000 rubles (roughly $9,150 USD)  are likely to trigger investigation.

The official commented that cryptocurrencies were set to be defined as a “legit tool of payments and investments,” however Russians can no longer move large sums of coins around with no repercussions as such activities will be considered business-related going forward.

It’s All About Control

International wallets and services working with crypto space are out of reach for the Russian police.

Alas, Russia’s federal authorities are trying to consolidate their grip on Russia’s nook of the cryptoverse while that nook is still relatively fledgling.

The rough measures will likely make many domestic crypto business flee underground. Some cryptocurrency users are already proposing that the “warning cap” should be raised from the equivalent of $9,150 to $100,000 to avoid flow-outs of honest market participants.

Bitsonline will continue to track the situation as it develops.

Will the heavy-handed approach of Rosfinmonitoring influence other nations to follow suit? Let us know in the comments section below. 

Images by Jeff Fawkes, Pixabay

(Excerpt) Read more Here | 2018-10-30 20:01:09


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