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Financial watchdog FATF reduces Russia’s rating over digital asset control deficiencies


Financial watchdog FATF reduces Russia’s rating over digital asset control deficiencies
Mar, 02, 2024
1 min read
by CryptoPolitan
Financial watchdog FATF reduces Russia’s rating over digital asset control deficiencies

The Financial Action Task Force (FATF) has recently adjusted Russia’s compliance rating to “partially compliant” in terms of its ability to monitor and combat suspicious transactions involving virtual assets. 

Reason for Russia’s downgrade

Reports from RBC indicate that this downgrade is primarily due to shortcomings in Russia’s 2020 “On Digital Financial Assets” legislation. The law defines digital financial asset (DFA) providers but does not clearly identify which entities are permitted to act as DFA and cryptocurrency providers, creating a gap in the regulatory oversight of digital currencies and assets.

Furthermore, Russia’s current digital financial services regulations prohibit the use of digital currencies for payment by its citizens, yet they lack a comprehensive framework for regulating and supervising cryptocurrency transactions. This lack of detailed regulation has been linked to an increase in illicit transactions using crypto assets. According to Rosfinmonitoring, Russia’s financial monitoring service, there has been a notable surge in illegal transactions involving cryptocurrencies, doubling in number in 2023.

The FATF, an intergovernmental organization aimed at setting global standards to prevent money laundering and terrorist financing, had awarded Russia the highest compliance score in 2019. However, Russia’s influence within the FATF was reduced in 2022 amidst geopolitical tensions, which has further complicated its standing in the international financial community.

Rosfinmonitoring’s data reveal a tripling in the volume of illegal crypto transactions from the start of the previous year to November, underscoring the pressing need for regulatory updates. The agency has called for quick action to address the regulatory vacuum and improve the country’s defenses against financial crimes facilitated by digital currencies.

Amid these regulatory challenges, there are reports that Russia is proposing the creation of a payment system among BRICS nations using central bank digital currencies (CBDCs) for trade settlements, aiming to enhance financial cooperation and reduce reliance on traditional global financial mechanisms.

Read the article at CryptoPolitan

Read More

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Financial watchdog FATF reduces Russia’s rating over digital asset control deficiencies


Financial watchdog FATF reduces Russia’s rating over digital asset control deficiencies
Mar, 02, 2024
1 min read
by CryptoPolitan
Financial watchdog FATF reduces Russia’s rating over digital asset control deficiencies

The Financial Action Task Force (FATF) has recently adjusted Russia’s compliance rating to “partially compliant” in terms of its ability to monitor and combat suspicious transactions involving virtual assets. 

Reason for Russia’s downgrade

Reports from RBC indicate that this downgrade is primarily due to shortcomings in Russia’s 2020 “On Digital Financial Assets” legislation. The law defines digital financial asset (DFA) providers but does not clearly identify which entities are permitted to act as DFA and cryptocurrency providers, creating a gap in the regulatory oversight of digital currencies and assets.

Furthermore, Russia’s current digital financial services regulations prohibit the use of digital currencies for payment by its citizens, yet they lack a comprehensive framework for regulating and supervising cryptocurrency transactions. This lack of detailed regulation has been linked to an increase in illicit transactions using crypto assets. According to Rosfinmonitoring, Russia’s financial monitoring service, there has been a notable surge in illegal transactions involving cryptocurrencies, doubling in number in 2023.

The FATF, an intergovernmental organization aimed at setting global standards to prevent money laundering and terrorist financing, had awarded Russia the highest compliance score in 2019. However, Russia’s influence within the FATF was reduced in 2022 amidst geopolitical tensions, which has further complicated its standing in the international financial community.

Rosfinmonitoring’s data reveal a tripling in the volume of illegal crypto transactions from the start of the previous year to November, underscoring the pressing need for regulatory updates. The agency has called for quick action to address the regulatory vacuum and improve the country’s defenses against financial crimes facilitated by digital currencies.

Amid these regulatory challenges, there are reports that Russia is proposing the creation of a payment system among BRICS nations using central bank digital currencies (CBDCs) for trade settlements, aiming to enhance financial cooperation and reduce reliance on traditional global financial mechanisms.

Read the article at CryptoPolitan

Read More

BRICS: Russia Central Bank Ditches US Dollar For Chinese Yuan

BRICS: Russia Central Bank Ditches US Dollar For Chinese Yuan

BRICS’ Russia is ditching the US Dollar in favor of the Chinese Yuan for trade, accor...
Jun, 15, 2024
2 min read
by Watcher.Guru
BRICS: HSBC Predicts How Long US Dollar Will Remain Global Currency

BRICS: HSBC Predicts How Long US Dollar Will Remain Global Currency

Leading global bank HSBC has predicted the future of the US dollar forecasting how lo...
Jun, 15, 2024
2 min read
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