Russia’s Prosecutor General Demands Crypto Exchanges to Share User Data

Russia’s Prosecutor General Demands Crypto Exchanges to Share User Data – Igor Krasnov, the head of Russia’s Prosecutor General’s Office, has proposed that all crypto service providers operating in the country should register with the authorities. Additionally, he has suggested that exchanges should be obligated to disclose information about their users to Russian security services.

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However, Krasnov is also of the opinion that simply giving cryptocurrencies the status of property under Russian law will not effectively combat the laundering of criminal proceeds. He stressed the need for regulatory measures to be put in place to tackle the challenges posed by the illicit use of cryptocurrencies.

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As reported by Rosfinmonitoring, Russia’s financial watchdog, the senior prosecutor stated in an interview with “Financial Security” magazine that the current challenging geopolitical climate has heightened the risks of exploiting the vulnerabilities of digital assets.

Furthermore, Igor Krasnov has advocated for the inclusion of cryptocurrencies in Russia’s criminal law, which would involve acknowledging that they can be the target of criminal activity and encroachment, and setting up protocols for their seizure, storage, and forfeiture by the government.

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As of now, crypto assets and associated transactions in Russia are still not subject to comprehensive regulation, and lawmakers and officials are still deciding on the appropriate approach. While some government institutions are in favor of imposing strict regulations to restrict their use, others are in favor of legalizing certain activities such as mining and allowing payments for cross-border settlements and trading under specific legal frameworks.

Currently, a bill pertaining to crypto mining is being reviewed in the State Duma, the lower house of the Russian parliament. Recent reports indicate that lawmakers are contemplating the possibility of imposing criminal penalties on miners who evade taxes or fail to report their holdings of digital assets to the government.

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Following the proposal from the finance ministry, the Russian crypto industry association expressed concern and requested clarification, cautioning that Russia could fall behind other nations if it continues to adopt a strict approach towards crypto regulations.

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