To make crypto regulations in the country more robust, the Russian central bank recently published a new set of guidelines for banks. The guidelines are related to the labeling of crypto transactions.
A new legislation
The 375-P protocol suggests how banks could use the existing anti-money laundering (AML) framework in the cryptocurrency space. The proposed legislation contains this concept which makes crypto industry transactions easier for banks to tackle. The Russian central bank has updated its guidance on crypto transactions and listed 100 signs that could allow banks to label some transactions as suspicious.
The document is still going through regulatory assessment and banks in Russia have already put a blanket ban on digital asset holders. They also have the authority to block some transactions or close some accounts related to crypto dealers.
A representative from the central bank said that the new list of signs is “not exhaustive.” Talking to RBC, a local news outlet, he said,
“Credit organizations have the right to supplement it with their own criteria specific to them, taking into account the scale, specificity, and nature of the credit institution, the nature of transactions performed by customers and the level of legalization risk associated with them (money laundering).”
Russian central bank’s crypto aversion
Russians believe that cryptocurrencies could be used for avoiding the capital controls of the country. The central bank also suggests that these digital coins could be used by terrorists and criminals. According to senior officials of CBR, there is ample support for a national ban on cryptocurrency payments. They said that digital currency payments “carry significant risks, including criminal money laundering and the financing of terrorist activities.”
The Russian parliament may pass crypto laws in the upcoming spring. The country has been waiting for these laws for at least two years. In May 2018, the State Duma’s lower chamber passed the first reading of the crypto law after which 410 deputies unanimously voted for the approval of the bill with just one vote is disfavor.
The new legislation contains two laws- crowdfunding law and a law on digital financial assets. A second reading will finalize the amendments. The bill will then go to the Federal Council, i.e. the upper house and will finally be signed into law by President Vladimir Putin.