Russia Drafts New Guidance to Banks on Crypto Transactions

In an effort to foster regulatory clarity in the , the nation’s central bank has proposed fresh guidelines to govern market participants and stakeholders.
As reported, the proposed legislation explains how banks can apply the broader AML framework, dubbed ‘375-P protocol,’ to tackle money laundering related to . Based on a new set of rules, the updated guidance lists 100 signs that would allow banks to label crypto transactions as suspicious.

While the document is undergoing regulatory assessment, it enables Russian banks to put a blanket ban on crypto-asset holders and authorizes them to block transactions or close certain accounts of crypto dealers in Russia.
The new list “is not exhaustive,” the Central Bank representative told local news outlet RBC: “Credit organizations have the right to supplement it with their own criteria specific to them, taking into account the scale, specificity and nature of the credit institution, the nature of transactions performed by customers and the level of legalization risk associated with them ( money laundering),” he added.
The apex bank has long remained wary of cryptos
While Russia appears to be worried about cryptocurrencies being used to avoid the country’s capital controls, for its part, Russia’s central bank cites the possibility of exploitation by criminals and terrorists. CBR’s senior officials indicated that they would support a national ban on crypto payments, claiming they “carry significant risks, including criminal money laundering and the financing of terrorist activities.”
Recent proposals come as Russia’s parliament could pass its long-awaited crypto laws as early as the upcoming spring. In May 2018, the lower chamber of the State Duma passed the first reading, almost unanimously, with 410 deputies voted to approve the bill at the hearing, and only one voted against it.
The second reading is when amendments are finalized, after which the bill goes to the upper house, the Federation Council, before being signed into law by President Vladimir Putin.
As reported, the  incorporates two laws “the crowdfunding law, including the ICO, and the law on digital financial assets.” Let’s recall that three bills hit the house floor in the first reading under the names “On Digital Financial Assets,” “On Attracting Investments Using Investment Platforms,” and “On Digital Rights.”