Russia warned of potential FATF downgrade over cryptocurrency regulation

The Financial Action Task Force (FATF) could downgrade Russia’s rating for compliance with its recommendations in the area of cryptocurrency regulation. According to РБК, citing deputy head of Rosfinmonitoring German Neglyada.

He said that, in the absence of sector-specific laws for the Bitcoin market, the jurisdiction is considered risky.

«For more effective countering of crime [using cryptocurrencies], regulatory measures must be taken. We have repeatedly said that the resolution of this issue has been delayed», — noted Neglyada.

He also added that regulation should require compliance with anti-money-laundering legislation by exchanges and exchangers. In particular, this means mandatory customer identification, keeping records of transactions, and cooperation with Rosfinmonitoring.

«This regulatory approach is preferable to a full ban, as a substantial number of individuals and legal entities in Russia own cryptocurrency», — emphasized Neglyada.

As reported, since February 24, FATF has temporarily removed Russia from the organisation’s list of member states.

In particular, Russia can no longer perform any leadership or advisory functions, participate in governance and membership decisions, set standards, or contribute to expert assessments.