• Russian anti-money laundering regulator Rosfinmonitoring is monitoring over 25,000 crypto users.
• It believes cryptocurrencies are being used for money laundering and has conducted 120 crypto-related investigations.
• The body has developed blockchain analytics software to improve its monitoring capabilities.
Russian AML Regulator Monitors Crypto Users
The top Russian anti-money laundering regulator, Rosfinmonitoring, says it is “monitoring” over 25,000 cryptocurrency users – and claims it has sophisticated tools that let it detect illegal activities. The agency suspects cryptoassets are being used as a money laundering tool in many instances.
Crypto Use Growing in Russia
Per Finam, Yury Chikhanchin, the head of Rosfinmonitoring, recently held a crypto-themed meeting with President Vladimir Putin. Chikhanchin was quoted as stating that “unfortunately,” the “volume of use” of “cryptocurrencies” was “growing” in Russia and turnover is estimated at over BTC 630K. He added that the body had conducted about 120 crypto-related investigations which had led to criminal prosecutions.
Rosfinmonitoring Uses Blockchain Analytics Software
The Rosfinmonitoring chief claimed that advances in blockchain analytics software had helped the body increase its monitoring capabilities. In 2020, the body began using a de-anonymizing solution in conjunction with VTB Bank which allowed them to monitor transactions on the Bitcoin blockchain protocol but can now be used for over 20 other networks too. Testing with this tool is now underway at other government organs such as Internal Affairs and Security Service too.
Assistance Asked From Other CIS Countries
Chikhanchin concluded that regulators from several Commonwealth of Independent States countries have asked Rosfinmonitoring to provide them with the same solution they have created using blockchain analytics software and de-anonymizing technology.
Conclusion
The long-serving head of Rosfinmonitoring met with President Putin to discuss cryptocurrencies and their potential use for money laundering purposes. The organization is utilizing sophisticated tools such as blockchain analytics software and de-anonymizing solutions along with other government agencies to monitor more than 25K participants involved in crypto operations in Russia and beyond its borders into other CIS countries who have requested assistance from them too