Russia: Cryptocurrency is Now Subject to Anti-money Laundering Legislation

Russia: Crypto is Now Subject to Anti-money Laundering Legislation

 

According to the new statement made by the Russian Supreme Court, crypto incomes gained from any criminal activities are now officially recognized as money laundering. The designated decree was issued in accordance with the recommendations of FATF. Experts believe it will not affect the regular turnover of digital assets in the country.

The Supreme Court of Russia introduced the concept of “cryptocurrency” in the ruling on the laundering of criminal proceeds, RBC news agency reported on February 26.

Judges have officially proclaimed that articles 174 and 171 of the Criminal Code regarding money laundering will be extended to cryptocurrency income. Thus, the exchange of digital assets to fiat money will now be equal to the legalization of criminal proceeds.

As noted in the Court’s statement, new changes were implemented due to the recommendations of the Financial Action Task Force (FATF).

Currently, crypto turnover is not regulated in Russia on the federal level. Last year, the highly anticipated law on digital assets has passed the first hearing in the national parliament, but further adoption has stuck. Now the document is expected to come into force during the current year.

Meanwhile, yesterday Russian President Vladimir Putin has ordered the lawmakers to enact legislation on digital assets and other documents related to the digital economy until July 1.

Experts agree that the Supreme Court’s decision will not affect regular operations with the cryptocurrency in Russia while the regulatory issues aren’t clarified. According to the Rosfinmonitoring, a Russian state body for fighting financial crimes, cryptocurrency is considered as “private property” in most of the criminal cases.