The financial regulators in Russia have decided to introduce new security measures on the conversion from crypto assets to fiat currencies that involve the banking system.
German Neglyad, the Financial Monitoring Service’s Rosfinmonitoring deputy head of Russia, said that this decision is based on the government’s concern of weeding out instances such as money laundering and other practices which have been deemed illegal by the government. It would allow the Russian government to keep a close eye on such instances in order to protect the national security and also to prevent crypto asset-related scams, which are very common these days because the crypto assets have become massively popular in such a short time, but most of the people don’t have ample knowledge about it, so they easily get scammed when they try to invest in it.
German Neglyad said that according to the regulations proposed by his department, the monitoring system would track all the conversions made from crypto assets to fiat currencies and also the utilization of those proceeds after they have been cashed out. Nonetheless, the crypto asset experts are saying that these regulations would do nothing but lay the ground for the abolishment of various crypto assets such as Bitcoin.
Crypto Proceeds are Already Being Monitored by the Banks
German Neglyad reported that the banks are already keeping a close eye on the transactions made by digital assets. He stated that the banks had been directed to check for every transaction in which a digital asset gets exchanged into a fiat currency and then report the details of that transaction to the German department.
He also stated that Russia is currently working with its foreign allies in order to make sure that the proceeds from crypto assets are not being used in any kind of activities related to terrorism.
These regulations into being only a year after the president of Russia, Vladimir Putin, legalized crypto assets in the country. It is a country where crypto assets are not considered to be legal tender. The government’s policy requires everyone who owns crypto assets to declare their digital assets.