Rosfinmonitoring, a financial monitoring agency in Russia, said on Friday that it is using software to track cryptocurrency transactions. Also, it hopes to improve its capabilities as Moscow regulates what one lawmaker dubbed “cryptomania.”
The Bank of Russia has long expressed skepticism about cryptocurrencies. It has citing financial stability concerns, and has advocated for a complete ban on trading and mining. As it runs counter to the government’s desire to regulate the industry.
According to Rosfinmonitoring’s head, Yuri Chikhanchin, Russia has already identified specific criminal cases involving cryptocurrencies. Therefore, the agency wants to improve its systems and identify transactions and blockchains that are currently hidden.
According to Chikhanchin, it is currently not possible to cover everything, in part because not all countries are eager to regulate the industry. “When cryptocurrency records enter an unrestricted zone, we don’t know what is on the other end,” he explained. However, they believe they will complete this task.
“Cryptomania” comparing to gambling addiction in Russia: Anatoly Aksakov
The blockchain technology that underpins cryptocurrencies records transactions but not the identities of wallet owners. Thus, making it difficult to track them. Anatoly Aksakov, head of Russia’s lower house of parliament’s financial committee, stated that draft legislation regulating cryptocurrencies would be presented to the house in the autumn.
“Clearly, there will be proper regulation,” Aksakov said. He compared “cryptomania” to gambling addiction, which is strictly regulated in Russia.
“The same should apply to cryptocurrency transactions and trading. A phenomenon exists, and it cannot be neglected, “ he further mentioned. Regulators have targeted the cryptocurrency industry. It’s concerning that a recent blowup in the volatile market will have ramifications for the broader financial sector.
The slump, precipitated by the failure of two major tokens in May, has led to the suspension of withdrawals by crypto lender Celsius. Also, the liquidation of Singapore-based crypto hedge fund Three Arrows Capital. The Russian central bank has stated that it is open to the use of cryptocurrencies for international settlements. It has approved other digital asset transactions. Aksakov also anticipates that a cryptocurrency mining law, which the government hopes to tax, will be considered soon.
Unlike payment companies, most cryptocurrency exchanges initially rejected calls to block all Russian users. Hence, raising concerns among US lawmakers that digital assets could be used to circumvent Western sanctions imposed on Moscow for its actions in Ukraine. Major exchanges have stated that they will abide by sanctions by blocking sanctioned users. Binance froze deposits and trading for Russian users with crypto assets worth more than 10,000 euros in April.
