Russia’s central bank, in collaboration with Rosfinmonitoring, is testing a new system to track connections between cryptocurrency transactions and fiat operations. This initiative aims to assess the size of the local crypto market and enhance compliance measures for financial institutions.

The platform is currently in the pilot phase, being tested by five lenders. The pilot, scheduled until the end of May, focuses on establishing a foundational understanding of the actions and tools required for financial institutions to ensure crypto compliance. Key procedures include “know-your-crypto-client” and “know-your-crypto-transaction” protocols.

While the outcomes of the pilot are yet to be disclosed, this effort reflects Russia’s commitment to navigating the complexities of the cryptocurrency landscape. Russian authorities have been proactive in exploring regulatory frameworks for crypto activities, with some banks already tracking customers’ crypto transactions.

On the global front, authorities in the U.S. and U.K. are also monitoring crypto transactions, particularly those with potential ties to Russia. Recent reports suggest that significant funds may have flowed through the sanctioned Russian crypto exchange Garantex. It remains unclear whether the new system by Russia’s central bank and Rosfinmonitoring specifically targets transactions linked to Garantex or aims to monitor all crypto activities within the traditional finance sector.

As developments unfold in the cryptocurrency space, it is crucial for investors and enthusiasts to stay informed about regulatory changes and compliance measures. Stay tuned for more updates on Global Crypto News to keep up with the latest trends and news in the world of cryptocurrencies.

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