Russia is building one of the most comprehensive cryptocurrency surveillance architectures of any major economy, with new legislation set to give the country’s financial intelligence agency automatic access to data on every significant crypto transaction made by Russian citizens at home and abroad.
Rosfinmonitoring Gets Sweeping New Powers
The financial monitoring agency Rosfinmonitoring is set to become the central node of Russia’s crypto oversight system under a companion bill to the government’s core cryptocurrency legislation. The agency will receive real-time data feeds on all crypto transactions above 60,000 rubles, down from an earlier proposed threshold of 100,000 rubles, as well as all foreign trade transactions involving cryptocurrency worth 1 million rubles or more.
For transactions above the 60,000 ruble threshold, the full name or legal entity name, cryptocurrency wallet address, physical address, date of birth, and taxpayer identification number of both the payer and recipient must be submitted. For smaller transactions, only the name and wallet address are required.
Transactions between Russian residents and non-residents will be automatically forwarded to Rosfinmonitoring’s financial intelligence division without requiring a separate request.
The reporting obligation extends beyond Russian institutions. Foreign financial institutions holding data on Russian citizens’ crypto activity will also be required to submit transaction reports if amounts exceed the threshold.
State Duma Approves Final Framework
The Financial Markets Committee of the State Duma has approved the draft bill on state control over cryptocurrency for its second and primary reading, with committee chairman Anatoly Aksakov confirming the committee’s recommendation to pass the document.
The amended version removes the earlier requirement to declare crypto wallet addresses in full, replacing it with a requirement to declare only balances and transactions. Aksakov described this as a privacy protection, saying it would shield residents from the risk of sensitive information leaks that could be used against Russia’s interests.
The bill also introduces several new permissions alongside the surveillance framework. Legal Russian brokers and asset managers will be allowed to conduct transactions on foreign crypto exchanges, subject to those exchanges meeting jurisdictional friendliness requirements. An amendment will allow the legal purchase of stock market securities and Russian digital financial assets using cryptocurrency. For non-qualified investors, an annual limit of 300,000 rubles through a single intermediary will apply, restricted to the most liquid cryptocurrencies.
A mandatory two-day freeze will apply to transfers of significant amounts abroad or to third parties.
Central Bank Powers Expanded
The legislation also broadens the Russian Central Bank’s authority to restrict or ban specific cryptocurrency transactions. Previously, those restriction powers applied only to non-credit financial institutions. Under the new proposals, they will extend to banks as well. The Central Bank would be empowered to impose bans if cryptocurrency transactions are deemed to threaten investor interests or risk destabilising the financial system.
Banks will be required to hold cash reserves equivalent to the value of any cryptocurrency purchased, covering associated risks. A new maximum limit on digital asset transactions for banks, previously proposed at 1% of a banking group’s capital, is also being established.
Timeline Delayed to September
The legislation was originally scheduled to take effect on 1 July but stalled in the State Duma. Vladimir Chistyukhin, First Deputy Chairman of the Bank of Russia, has since indicated the full package of laws is now expected to enter into force on 1 September.
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