Herman Neglyad, the MP for Russian money laundering agency Rosfinmonitoring, said his organization will monitor cryptocurrency transactions that involve switching from crypto to fiat. Neglyad made the revelation recently at a meeting of the State Duma committee on financial markets.

Banks are already cooperating

According to a Russian news site, Regnum, banks are already cooperating with the anti-money laundering agency.

“Banks have already started paying attention to stock market trades, so when they find that a deal has taken place after exchanging virtual assets for hard currency, they have already started evaluating them and actually letting us know about those trades,” he said Neglyad.

The Rosfinmonitoring official adds that alongside the country’s central bank, his organization will “introduce a separate code that distinguishes a separate group of such suspicious transactions, keeping traditional financial institutions focused on the issue”.

Meanwhile, Neglyad’s remarks about Russia’s intention to monitor crypto-ruble transactions follow recent comments from the country’s President Vladimir Putin. As reported by Bitcoin.com News, President Putin has expressed concern over what he calls the “illegal cross-border transfer of cryptocurrencies”. The Russian head of state added that criminal elements “are increasingly using these digital financial assets and this warrants increased surveillance”.

Russia’s drive to regulate cryptocurrencies

In recent years, the Russian nation-state has grappled with the question of how to regulate the use of cryptocurrencies in the country. In September 2020, the country proposed harsh penalties for those who fail to disclose cryptocurrency holdings that exceed a certain threshold. In February 2021, Bitcoin.com News reported that a bill to recognize cryptocurrencies as property had advanced in the Russian parliament.

Meanwhile, it is not clear whether Neglyad’s remarks are related to President Putin’s earlier comments. However, the Regnum report states that the meeting of the State Duma committee at which Neglyad spoke was “in preparation for the Russian government’s report”.

How do you feel about Rosfinmonitoring’s proposal to monitor cryptocurrencies? You can share your thoughts in the comments below.

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