Simon Ng Yuri Chikhanchin, the Director of Rosfinmonitoring, has highlighted a significant surge in cryptocurrency transactions within Russia, noting that the first nine months of 2023 have seen over 185,000 such transactions. In a discussion on the urgent need for regulatory measures within the cryptocurrency market, Chikhanchin underscored the market’s connection to various illegal activities, advocating for swift action.
Rosfinmonitoring: Increasing Cryptocurrency Momentum in Russia
The head of Rosfinmonitoring, Yuri Chikhanchin, has pointed out the growing momentum of cryptocurrency adoption in Russia. In a conversation with Izvestia, Chikhanchin emphasized that the tally of cryptocurrency transactions within the first three quarters of 2023 has already exceeded the annual total of the preceding year.
In his exchange with Izvestia, Chikhanchin remarked:
“Our monitoring indicates that, in the first nine months of the current year, we observed upwards of 185,000 cryptocurrency transactions, a significant increase from the 60,000 recorded in the corresponding timeframe last year.”
Not only has the number of transactions spiked, but the aggregate sum of capital transferred through these transactions has nearly doubled in the same period.
Chikhanchin revealed that Rosfinmonitoring, through a partnership with VTB Bank—Russia’s second-largest financial institution—has developed ‘Transparent Blockchain’, a sophisticated software solution designed to scrutinize cryptocurrency transactions across more than 30 different blockchain platforms. This tool provides the capability to identify the parties involved in these transactions.
This software has attracted interest from nations in the Middle East, Africa, and Latin America, and is being considered for adoption by banking institutions to aid in crypto-compliance operations.
The Imperative for Regulation
Further addressing the state of cryptocurrency oversight, Chikhanchin expressed a pressing need for a definitive regulatory framework, one that should be expedited regardless of whether it leads to the prohibition of cryptocurrencies. Delving into the regulatory stance, he stated:
“The quicker we arrive at a resolution, the better. We have prepared our operational protocols for both eventualities, whether cryptocurrency transactions are regularized or prohibited outright. However, clarity regarding the operative regulations is essential.”
The call for regulation stems from the utilization of cryptocurrencies in illegal endeavors, including drug trafficking, financing terrorism, and corruption, where they often serve as a cash alternative.
In contrast, Rosfinmonitoring views the emerging digital ruble—the central bank’s digital currency which is in the trial phase—positively, as it offers an operation sequence visibility that promotes transaction transparency, according to the Rosfinmonitoring director.
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Table Of Contents
Frequently Asked Questions (FAQs) about Rosfinmonitoring cryptocurrency transactions
How many cryptocurrency transactions were recorded in Russia during the first nine months of 2023?
During the first nine months of 2023, Rosfinmonitoring recorded over 185,000 cryptocurrency transactions in Russia.
What concerns does Rosfinmonitoring have regarding cryptocurrencies?
Rosfinmonitoring is concerned that cryptocurrencies are being used for illicit activities such as drug trafficking, terrorism financing, and corruption, and thus calls for urgent regulatory measures.
What is ‘Transparent Blockchain’?
‘Transparent Blockchain’ is a software tool developed by Rosfinmonitoring in partnership with VTB Bank to track cryptocurrency transactions across more than 30 blockchain platforms, allowing identification of transaction parties.
What is the digital ruble, and what is Rosfinmonitoring’s view on it?
The digital ruble is a central bank digital currency currently in pilot stages in Russia, which Rosfinmonitoring views favorably due to its transparent nature, showing a clear sequence of operations.
Why is there a call for cryptocurrency regulation in Russia?
There is a call for regulation due to the significant increase in cryptocurrency transactions and the associated risks of their use in illegal activities, necessitating clear operational rules.
More about Rosfinmonitoring cryptocurrency transactions
- Rosfinmonitoring on Cryptocurrency Transactions
- Yuri Chikhanchin’s Interview on Crypto Regulation
- Transparent Blockchain Tool
- Russia’s Cryptocurrency Market
- Digital Ruble Development
5 comments
Surprised to see VTB involved with crypto, they’re usually more traditional in their approach to banking systems
wow didnt know crypto was that big in Russia now, thats a lot of transactions for just 9 months
tracking crypto transactions that’s gonna scare some people off transparency is good but privacy is also a right no?
regulation is a double-edged sword could stifle innovation but I get the point too much shady stuff going on
Digital ruble sounds interesting but will it be as good as they promise?? skeptical but hopeful