Authorities are exploring ways to strengthen customer due diligence for crypto companies. This is currently challenging due to the anonymity of both clients and many transactions. RBC examined how crypto compliance is currently structured in Russia and who else might be affected.
The Russian crypto market lacks clear requirements for customer and transaction verification, but some crypto exchanges have independently implemented KYC (know your customer) and AML (anti-money laundering) procedures. These partially overlap with bank measures, but are complicated by the anonymous nature of cryptocurrencies.
In Russia, the activities of crypto exchanges or crypto exchangers are not legally regulated, so mandatory compliance requirements for cryptocurrency owners and their transactions have not been established. However, in practice, exchanges are implementing KYC (know your customer) and AML (anti-money laundering) procedures themselves.
Platforms are taking this step to minimize the risk of blocking cryptocurrency withdrawals to fiat currency on bank cards. This means it’s a “necessary measure to survive within the banking system”, — notes Andrei Gusev Senior Partner at Nordic Star Law Offices, in his commentary for RBC.
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