Rosfinmonitoring Reports Surge in Crypto Activity in Russia, Records 185K Transactions in 2023

Yuri Chikhanchin, Director of Rosfinmonitoring,

the Federal Service for Financial Monitoring, highlighted the growing popularity of cryptocurrency in Russia in a recent interview. Chikhanchin revealed that over 185,000 cryptocurrency transactions were conducted in the first nine months of 2023, surpassing the total recorded in 2022. He emphasized the urgent need for regulatory measures in the crypto industry due to its association with illicit activities.

Rising Crypto Adoption in Russia In an interview with Izvestia, Yuri Chikhanchin discussed the increasing prevalence of cryptocurrency transactions in Russia, noting a significant uptick compared to previous years. He revealed:

“Our data indicates that the number of cryptocurrency transactions in the first nine months of this year exceeded 185,000, compared to 60,000 recorded during the same period last year.”

Chikhanchin also highlighted the substantial increase in transaction volumes during this period, nearly doubling compared to previous records.

Rosfinmonitoring’s Role in Monitoring Crypto Transactions Chikhanchin outlined Rosfinmonitoring’s efforts to monitor cryptocurrency transactions using the “Transparent Blockchain” software toolkit, developed in collaboration with VTB Bank, Russia’s second-largest bank. This tool enables tracking transactions across more than 30 blockchains, providing insights into the identities of both senders and receivers involved in these transactions. Additionally, the software has garnered interest from countries in the Arab, African, and Latin American regions, enabling banks to fulfill crypto-compliance obligations effectively.

Urgent Need for Regulation Expressing concerns about the lack of regulatory clarity in Russia’s crypto landscape, Chikhanchin emphasized the necessity of establishing a regulatory framework promptly, even if it entails a ban on cryptocurrency. He stated:

“The sooner a decision is made, the better. We already have plans in place for both scenarios—whether cryptocurrency payments are legalized or completely banned. However, it is crucial to establish clear rules of engagement.”

Chikhanchin attributed his stance to the widespread misuse of cryptocurrency in illicit activities within Russia, including its utilization by drug dealers, terrorists, and corrupt officials as a substitute for traditional cash.

Digital Ruble and Regulatory Outlook In contrast to the challenges posed by cryptocurrencies, Chikhanchin expressed a favorable view of the upcoming digital ruble, the Russian central bank’s digital currency currently undergoing pilot testing. He highlighted its potential to enhance transparency in financial transactions.

What are your thoughts on the rising popularity of cryptocurrency in Russia? Share your opinions in the comments below.

[Tags: Rosfinmonitoring, cryptocurrency, Russia, regulation, Transparent Blockchain, digital ruble, illicit activities, financial monitoring]


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