Russia pilots new system for tracing crypto-to-fiat links

Russia’s central bank and Rosfinmonitoring pilot a new system to trace connections between crypto transactions and fiat operations.

The Bank of Russia alongside Rosfinmonitoring, the country’s main body for financial intelligence, is working on a platform to detect connections between fiat operations and crypto transactions amid efforts to evaluate the size of the local crypto market.

According to a report from RBC, Ilya Bushmelev, director of project portfolio management at “Innotech,” speaking at a forum organized by Rosfinmonitoring revealed that the platform is currently undergoing pilot testing by five lenders without naming them though.

“Based on the results of the pilot, a basic understanding of the necessary actions and tools for financial lenders in terms of conducting crypto-compliance should be formed.” Ilya Bushmelev

As per Bushmelev, the pilot, scheduled until the end of May, may be extended based on outcomes. The objective is to establish a foundational understanding of necessary actions and tools for financial institutions concerning crypto compliance, including the “know-your-crypto-client” and “know-your-crypto-transaction” procedures. As of press time, it’s unclear whether the pilot provided positive insights on the matter.