Russia to Connect Banks to Cryptocurrency Transaction Analysis Service by 2025

Rosfinmonitoring plans to fully integrate Russian banks into its ‘Transparent Blockchain’ service by the end of 2025, enabling the identification of clients linked to cryptocurrency transactions. This was reported by RBC, citing Anton Lisitsyn, Deputy Director of the Federal Financial Monitoring Service.

According to him, the pilot is in the final stage of approval.

“We expect to complete the implementation by the end of the year, so that it becomes native to credit organizations, rather than being an alien element imposed by the Bank of Russia and Rosfinmonitoring as the coordinator of the anti-money laundering system,” the official stated.

Currently, more than 12,000 users, including law enforcement officers and foreign anti-money laundering units, such as those in CIS countries, are connected to the ‘Transparent Blockchain’ service.

The tool is expected to standardize information exchange between banks for crypto compliance and reduce the risk of disclosing confidential information.

‘Transparent Blockchain’ will be integrated into personal account systems, with the technology being adaptable to “the needs of banks.” Initially, connecting credit organizations to the service will not be mandatory.

“We are giving banks the option [to choose], and we are in dialogue with the Central Bank on whether to amend existing methodological recommendations to encourage banks to use the service,” Lisitsyn noted.

The official pointed to a “multiple” increase in suspicious cryptocurrency-related operations over the past three years. However, thanks to ‘Transparent Blockchain,’ the agency has made significant progress in conducting financial investigations into these cases, he added.

In April 2024, it was revealed that a pilot project to establish links between fiat and cryptocurrency operations of users was being implemented, involving the Central Bank of Russia, Rosfinmonitoring, and five major banks.

In June, Russian Prosecutor General Igor Krasnov announced control over the cross-border movement of Russians’ cryptocurrencies using special software.

Earlier, the Bank of Russia required 19 credit and financial institutions to verify cross-border transfers of resident individuals related to cryptocurrency purchases.