Russian Prosecutor General Announces Oversight of Cross-Border Cryptocurrency Transfers

Russia has implemented special software to track illegal cross-border financial flows, according to Prosecutor General Igor Krasnov, as reported by TASS.

The official noted a rise in criminal use of cryptocurrencies.

“To combat this, our country has developed special software. It is used for financial monitoring and criminal investigations, enabling the successful uncovering of entire operation schemes and the chain of users involved. This also addresses the issue of cross-border asset transfers,” Krasnov stated.

Previously, experts from BRICS countries’ prosecutorial services exchanged experiences in this area. The Russian Prosecutor General added that his office, along with colleagues, will continue to curb illegal cross-border cryptocurrency transfers.

ForkLog reported in October 2023 that Russian authorities were working on implementing technology to analyze citizens’ crypto transactions within the country. At that time, testing was conducted at one bank.

In April 2024, a pilot project was launched to establish connections between fiat and cryptocurrency transactions of users, involving the Bank of Russia, Rosfinmonitoring, and five major banks.

Authorities justify the need for control by the increasing number of suspicious digital currency operations.

In a letter from September 2021, the Bank of Russia classified operations with crypto exchanges as suspicious and recommended that banks conduct thorough monitoring. In cases of suspected money laundering, credit institutions are advised to block client transactions and even terminate agreements.

The regulator also announced plans to develop a mechanism to block payments to cryptocurrency exchanges and exchangers.