Moscow is preparing to regulate Russian crypto exchanges, aiming for compliance with Financial Action Task Force (FATF) standards. Dmitry Kirillov, a lecturer at the Moscow Digital School, mentioned that this is the next logical step for the government, which has already started regulating crypto mining and cross-border payments using crypto. Now, the focus will turn to Russian crypto exchanges.

Kirillov pointed out that current laws have gaps regarding peer-to-peer crypto transfers and exchanges. The Russian Ministry of Finance is considering allowing qualified investors to trade digital currencies on licensed exchanges.

The state anti-money laundering body, Rosfinmonitoring, announced plans for a “package of bills” that would require all crypto trading platforms in Russia to apply for operating permits from a central body. Exchanges would also need to “collect information about” crypto wallet owners and store transaction data for at least five years, providing this information to government and law enforcement agencies.

Despite many crypto exchanges operating in major Russian cities, they have been linked to money laundering and fraud. The Central Bank, which previously sought to ban all crypto exchanges, now seems to recognize the necessity of regulation rather than prohibition.

Yuri Brisov, a digital matters lawyer, noted that the proposed regulations align with FATF’s key recommendations, including licensing and data collection requirements, complying with standards like the Travel Rule.

Kristina Mkrtchyan, an adviser at the EBR law firm, affirmed that these measures are consistent with global trends to enhance control over crypto transactions, boost industry transparency, and combat money laundering and terrorist financing. However, she acknowledged this could lead to some market players exiting.

The Central Bank has yet to clarify its stance, although it currently restricts crypto exchange services to companies in its official cross-border crypto trade sandbox. Several leading Russian banks have shown interest in offering these services, but discussions about launching state-run crypto exchanges have subsided recently.

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