Russia's top prosecutor, Igor Krasnov, has recently demanded that digital asset exchanges must be obliged to provide user information to the nation's law enforcement agencies and that the circulation of cryptocurrencies in the Russian Federation should be regulated to counter money laundering. He believes that granting cryptocurrencies property status under Russian law is not sufficient to fight the legalization of criminal proceeds and that is why, Krasnov urged for their regulation in to address the challenges posed by their use for illicit purposes.

Krasnov has called for adding cryptocurrencies to the Russian criminal law and said that they should be recognized that they can be the subject of crime and encroachment, as well as establishing procedures for their seizure, storage, and confiscation by the state. Most government institutions in Russia favor a restrictive regime preventing the free circulation of digital assets while legalizing some activities such as mining and trading under special legal regimes.

In addition, a bill on crypto mining is still under review in the State Duma proposing criminal liability for miners evading taxation and failing to report their digital asset holdings to the government. The proposed bill provoked a reaction from the Russian crypto industry association, asking for clarification and warning that Russia may lag behind other countries if Moscow maintains its tough stance on crypto regulations.

Though the challenges posed by digital assets make regulation hard in Russia, the circulation of cryptocurrencies is still a very crucial issue to fight against money laundering, tax avoidance and other criminal activities associated with the use of crypto assets. Therefore, it is necessary to introduce regulations and laws on crypto transactions and activities in order to put them under control and prevent potential illegal activities in the Russian Federation.



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