Russia calls for identification of crypto holders

TL;DR Breakdown

• Alexander Bastrykin, the Investigative Committee Chair, has said that crypto transactions should no longer be anonymous.
• He explained that Russians should have transparent crypto transactions to discourage its misuse.

The head of the Federal Investigative Authority in Russia has called the government to add tighter crypto regulations. He recently said that their citizens who trade these assets should not remain anonymous. He explained that the anonymity of cryptocurrency is bad since it encourages the misuse of these assets.

Ant-corruption head calls for rules to deter misuse of cryptocurrencies

Alexander Bastrykin, the head of the Investigative Committee of Russia, is pushing for the government to abolish the anonymity of cryptos. He made these remarks in an interview with a Russian Newspaper. He revealed that the anonymous nature of cryptocurrency encourages bad players to misuse them. 

He also explained that he had already pointed the risks of cryptocurrencies in 2020. That year, he said that digital currencies pose additional risks like aiding financial extremism and terrorism.

He expressed that he has maintained his stance and believes that these assets require a proper regulatory framework. According to him, proper identification of crypto traders should be the first point for a good regulatory framework.

Alexander also noted that the online crypto services providers have been providing trading services anonymously but still have the holder’s information. Trading websites have also had a smooth time with Russian authorities over the past few years.

Crypto regulation stance in Russia

Currently, a crypto regulatory framework is under work in Russia. As a result, involved officials and authorities have to voice their stances and cooperate with the working group to develop a good structure. The working group convened at the Parliament last month to discuss the regulations. Other authorities like the Investigative Committee are also joining in.

The Investigative Committee is one of the most powerful authorities in Russia. Its role is to investigate other authorities and set anti-corruption measures. Its influence is so great that only the president has more power than it. It also has the right to investigate anyone and any authority in Russia.

Alexander Bastrykin has been against crypto misuse for a long time. In December 2020, he said the government should recognize these assets as property to help in some case proceedings. He also explained that recognizing these assets as property would greatly help investigators fight against crypto misuse.

Last August, the president signed a decree to approve the country’s anticorruption plan, which will last till 2024. The document gave some ministries and the Bank of Russia the power to investigate officials to disclose the value of their crypto stash. Now it remains to be seen how crypto regulation developments will be like in Russia as authorities and officials continue giving their proposals.