Crypto Exchanges Must Share User Data With Russia, Prosecutor Demands – Exchanges Bitcoin News

Digital asset exchanges must be obliged to provide user information to Russia’s law enforcement agencies, the country’s attorney general has insisted. The circulation of cryptocurrencies in the Russian Federation must be regulated to counter money laundering, the official added.

Cryptocurrency exchanges must report to Russian authorities, chief prosecutor says

Crypto service providers should be required to register in Russia and exchanges obliged to share information about their users with Russian security services, according to the head of the country’s state prosecutor’s office, Igor Krasnov.

He also believes that simply giving cryptocurrencies property status under Russian law is not sufficient to combat the legalization of criminal proceeds. Krasnov called for their regulation to address the challenges of using them for illegal purposes.

Quoted by the “Financial Security” magazine published by Russia’s financial watchdog, Rosfinmonitoring, the top actor further explained that the difficult geopolitical situation increases the risk of exploiting vulnerabilities related to digital assets.

Igor Krasnov also called for adding cryptocurrencies to the Russian Criminal Code, including recognizing that they can be the subject of crime and encroachment, as well as establishing procedures for their seizure, storage and confiscation by the state.

Crypto assets and related transactions are not yet fully regulated in Russia, where lawmakers and other officials are still considering their approach. Most state institutions favor a restrictive regime that prevents their free circulation while legalizing certain activities such as mining as well as payments in cross-border settlements and trade under special legal regimes.

A draft law on cryptomining is still under consideration in the State Duma, the lower house of the Russian parliament. Reports revealed last month that lawmakers are considering criminalizing miners who evade taxes and fail to report their digital assets to authorities.

The proposal, which originated from the Finance Ministry, sparked a reaction from the Russian Crypto Industry Association, which asked for clarification and warned that Russia could lag behind other countries if Moscow maintains its tough stance on crypto regulations.

Do you think Russia will oblige cryptocurrency exchanges to register and provide user data to law enforcement? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’ quote: “To be a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.