Cryptocurrency exchanges must abide by a mandate to provide information about their users to law enforcement agencies in Russia, the nation’s Prosecutor General has stated. The circulation of digital assets in the country is also a topic of discussion, and official has proposed regulations to battle money laundering.
Russian Crypto Exchanges Must Give User Data to Law Enforcement, Says Top Prosecutor
Crypto service providers must register and disclose user data to Russian security services, according to Igor Krasnov, the head of the Prosecutor General’s Office in the country.
He believes that simply granting cryptocurrencies property status is not enough to make them legitimate and valid. Krasnov has urged their regulation to tackle the problems posed by their illicit use.
Quoted by “Financial Security” published by Russia’s financial watchdog, Rosfinmonitoring, the chief prosecutor pointed out that geopolitical challenges increase the risk of digital assets being exploited for vulnerabilities.
Igor Krasnov also suggested adding cryptocurrency to the Russian Criminal law, recognizing that they may be subject to crime and encroachment and setting up procedures for their seizure, storage and confiscation.
Crypto assets and related transactions are not yet fully regulated in Russia, legislators and other officials are still evaluating their options. Most government institutions favor a restrictive regime to prevent their free circulation. However, some activities like mining and payments for cross-border settlements are allowed under special legal regimes.
The Senate is currently reviewing a bill regarding crypto mining, while the State Duma, the lower house of Russian parliament, is discussing criminal liability for miners who evade taxes and fail to report their digital assets to the government.
The proposal was originating at the finance ministry and caused an immediate reaction from the Russian crypto industry association, which requested clarification and warned that Russia may fall behind countries with more progressive crypto regulations.
Do you think that cryptocurrency exchanges should be required to register and give user data to law enforcement officials? Let us know in the comment section below.
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