Russia Drafts New Guidance to Banks on Crypto Transactions

In an effort to foster regulatory clarity in the Russian cryptos pace, 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 cryptocurrency activities. 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 Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term 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 Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term, 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 proposed legislation 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."