Russia's FATF Rating Downgraded Over Crypto Regulation Shortfalls The
FATF assessment has placed Russia at a "partially compliant" level in monitoring
virtual assets. The downgrade is linked to the country's 2020 rule on
digital financial assets.
While the law identifies providers, it fails to specify which entities can operate as
cryptocurrency providers, leaving a regulatory gap. Existing regulations only ban digital currencies for payment purposes.
Without comprehensive guidelines, illicit transactions using crypto assets have
doubled in 2023 alone, according to Rosfinmonitoring.
Previously awarded high compliance, Russia's standing in the international financial community is further complicated by geopolitical tensions.
Rosfinmonitoring reports a
tripling of illegal transactions using crypto assets, urging swift action to address the regulatory vacuum.
In contrast, Russia is exploring the use of central bank digital currencies for trade settlements across BRICS nations.
