New cryptocurrency regulations are being prepared by Russia’s central bank and regulators and are anticipated to go into effect in July 2026.
A local outlet claims that the new regulations will allow the government to monitor both domestic and foreign cryptocurrency holdings through authorised platforms and tax returns, as well as have more control over how people use cryptocurrency.
Anyone using Russian cryptocurrency services is required by the central bank to first undergo Know-Your-Customer (KYC) checks to verify their identification.
This system uses documents like passports or ID cards to verify a user’s identity. Additionally, the regulator intends to prevent cryptocurrency withdrawals from wallets run by Russian companies until these identity verifications are finished.
“No one is trying to stop Russian individuals and legal entities from continuing to hold cryptocurrency in foreign wallets,” stated Vladimir Chistyukhin, the central bank’s first deputy chair. Declaring [these holdings] to the Federal Tax Service is our only basic duty.
Authorities claim that by mandating domestic exchanges to implement KYC procedures that allow transactions to be traced back to verified individuals, the proposed regulations are intended to decrease anonymous cryptocurrency activities.
In summary, as many users now store funds in foreign wallets, regulators want to be able to trace Russian nationals’ offshore cryptocurrency holdings.
The central bank intends to limit transfers from Russian custodial wallets to non-custodial wallets situated outside under the proposed framework.
Source: X.com
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