BasEx | Russia's Potential FATF Downgrade Due to Cryptocurrencies
Russia Warned of Possible FATF Rating Downgrade Due to Cryptocurrencies
13.12.2023
Russia Warned of Possible FATF Rating Downgrade Due to Cryptocurrencies

The Financial Action Task Force (FATF) is considering the issue of lowering Russia's rating for compliance with recommendations related to cryptocurrency regulation. According to RBC, based on statements by German Neglyad, the Deputy Director of Rosfinmonitoring, the absence of specialized laws for the Bitcoin market makes the jurisdiction risky.

Neglyad noted that regulatory measures are needed to combat crimes associated with cryptocurrencies. He emphasized that the decision on this matter has been delayed.

Neglyad also pointed out the need for regulation, including compliance with anti-money laundering legislation by exchanges and exchangers. This involves mandatory client identification, transaction data retention, and cooperation with Rosfinmonitoring.

"It is preferable to regulate rather than completely prohibit, considering the significant number of cryptocurrency owners among both individuals and legal entities in Russia," added Neglyad.

Since February 24, FATF has temporarily excluded Russia from the list of participating countries, depriving it of the right to leadership and advisory functions, participation in decision-making, standard development, and conducting expert assessments.

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