With the rise in the popularity of cryptocurrencies, it has become a common norm to transact using them. While that is not a bad thing but some people use it for wrong activities. And since the entire landscape of crypto is so wide, the government needs to take additional measures to monitor such activities. Therefore, the Bank of Russia will collect crypto transactions data between individuals. They will also have access to the trading data of users. This means exchanges will need to share this data with the Bank to continue their operations.
Bank of Russia to keep a close eye on crypto transactions
Russia is currently very skeptical about allowing crypto in the country. They have considered the option to ban it as they fear it could hamper their economy. Then the fact that crypto’s decentralized nature makes it easy to be used for illegal activities is another issue. For this reason, the Bank of Russia is seeking more information from exchanges and financial institutions to prevent such activities. Exchnages that have shady businesses going on their platform are going to face a major issue due to this.
As of now, the Bank has sent reporting forms of transactions to the platforms. Once they receive some information on the same, they are going to request additional data on certain money transfers between individuals. It will also contain the personal info of people on both sides of the transaction.
The authorities have clarified that the goal of this step is to identify any form of risk that might be associated with any transaction. The government will probably be able to identify wrong activities like money laundering, tax evasion, gambling, and more. For this, they have also introduced new reporting procedures for all transactions and also special cases for large transactions.
The Bank of Russia is not asking for the personal detail of everyone. They just want the transaction data, and in case they observe any irregularities in the same, the personal data will be requested. There will be certain criteria to identify such transactions, and the privacy of a normal user will also not be hampered.
What are your thoughts as the Bank of Russia will collect crypto transactions data to prevent illegal activities? Do you think this will help them control such things? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: It’s too late to ban crypto in India says, Legal experts.