Russian Prosecutor General Orders Crypto Exchanges To Share User Data

The Prosecutor General of Russia has requested that crypto exchanges be required to submit user information to Russian law enforcement organizations. In addition, the aforementioned offer stated that the circulation of cryptocurrencies in the Russian Federation must be regulated in order to combat money laundering.

Russian Authorities’ View on Crypto Exchanges

Russian Prosecutor General Orders Crypto Exchanges To Share User Data

Crypto service providers shall be compelled to register in Russia, according to the office of the Prosecutor General of the country, Igor Krasnov. He has also argued that crypto exchanges should be required to give Russian security services information about their users.

The general prosecutor also thinks that simply giving cryptocurrency property status under Russian law won’t be enough to stop the legalization of illegal proceeds. Then, in an effort to resolve the issues brought on by their usage of illegal activities, he pushed for their regulation.

The aforementioned top prosecutor was quoted in the “Financial Security” magazine by Russia’s financial watchdog, Rosfinmonitoring, who also added that the risk of cyberattacks on digital assets is increased by the challenging geopolitical environment.

The same top prosecutor has also demanded that cryptocurrencies be included in the Russian penal code. The aforementioned action would supposedly entail acknowledging that cryptocurrencies can be the target of crime and intrusion as well as setting protocols for the authorities to take control of, store, and confiscate them.

Russia’s Crypto Regulation

Russian Prosecutor General Orders Crypto Exchanges To Share User Data

Russian legislators and government representatives are still figuring out how to fully regulate cryptocurrency holdings and related transactions. The aforementioned officials are purportedly considering several strategies. 

According to reports, a restrictive regime is supported by the majority of government organizations. That is intended to stop their unfettered circulation while legalizing specific operations under unique legal frameworks, like mining and payments made in cross-border settlements.

On the other hand, the State Duma, the lower chamber of the Russian parliament, is still debating a law that focuses on cryptocurrency mining. It has been reported in various publications that Russian lawmakers are considering the possibility of imposing criminal liability for miners who avoid paying taxes and fail to disclose their holdings in digital assets to the government.

The alleged suggestion is understood to have come from the finance ministry, which prompted the Russian Crypto Industry Association to respond by requesting further information. They have additionally cautioned that if Moscow maintains its strict position on cryptocurrency legislation, Russia may lag behind other nations.

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