Crypto exchanges and wallets will be required to provide customer data if requested by a judicial body — and unregulated platforms will be banned from advertising.
New amendments have reportedly been made to a cryptocurrency bill that will make the regulation of digital assets law in Russia.
A couple of interesting changes have been made. For instance, crypto exchanges and wallets will be required to provide customer data if requested by a judicial body.
The advertising of unregulated crypto exchanges is also going to be prohibited, and this came at the request of the FSB, part of the state's security apparatus.
The FSB requested information about "identification features of cryptocurrencies," presumably referring to the founders of coins or tokens. But this would be virtually impossible because of the industry's decentralized nature.
At a high level, the bill was accepted by the Ministry of Finance after careful review by several official bodies — including financial regulators, the taxman and the secret service.
It will now be passed on to Russia's parliament, the State Duma, which is expected to follow the ministry's recommendation and pass the bill.
Internal Disagreement over Extent of Regulation
The federal tax service proposed to tighten the regulation of crypto exchanges and crypto wallets without a license, although that comes against the explicit recommendation of the Ministry of Finance.
The agencies also disagree on how mining should be defined and how proceeds from crypto mining should be dealt with.
For example, the FSB advocated for a mandatory transfer of digital currency obtained as a result of mining to crypto exchanges, as well as for applying AML standards to it. The Ministry of Finance opposes such strict regulation.
It also rejected the FSB's proposals for additional regulation of crypto wallets and mining pools, considering it inappropriate and "too detailed" at this point.