- Vice President of Russia’s Rosfinmonitoring, Pavel Livadny says Crypto transactions worth over 600,000 rubles will be monitored
- Livadny noted that the FATF recommends DLT-based cryptoassets as a viable medium of payments and investment
- Yury Pripachkin, president of the Russian blockchain association, says regulation will foster investor protection
According to a Russian news outlet, Izvestia report on October 29, 2018,, all member states of the Financial Action Task Force (FATF) will soon update their existing financial laws to make it mandatory for cryptocurrency-linked businesses including digital assets exchanges, initial coin offerings (ICOs) and others to obtain the relevant licenses from regulators and conduct robust know-your-customer (KYC) anti-money laundering (AML) procedures.
FATF Primed to Eradicate Money Laundering
As earlier reported by Blockchain Reporter on October 22, 2018, the Financial Action Task Force (FATF), a Paris-based organization founded in 1989 to combat money laundering and other financial crimes, announced it would implement new rules that would make it mandatory for cryptocurrency exchanges bitcoin-linked businesses, all forms of cryptocurrency-based fundraisers (ICOs) and others, to get registered and obtain the relevant licenses.
In a chat with Izvestia, the deputy head of Rosfinmonitoring (Federal Financial Monitoring Service of the Russian Federation) has said that in line with the recommendations of the FATF, all cryptocurrency-related businesses will be required to register with Rosfinmonitoring, and the body will in the near future make it compulsory for crypto-to-fiat transactions exceeding 600,000 (roughly $9,120) rubles to be monitored.
Crypto Regulation Will Increase Investor Protection
Of a truth, Satoshi Nakamoto’s motive behind the creation of bitcoin, the world’s flagship cryptocurrency, was to provide a decentralized monetary system devoid of regulation or any form of third-party interference.
Sadly, the illicit activities of bad actors make it almost impossible for cryptocurrency to achieve its true potentials without regulation.
Notably, in recent times, quite many cryptocurrency investors have fallen victims to scam initial coin offerings, bitcoin-based Ponzi schemes, and other fake cryptoasset investment programs.
On October 23, 2018, Blockchain Reporter informed that retired American boxer, Floyd Mayweather Jnr and music producer, DJ Khaled had been sued by investors in the Centra Tech scam ICO project that raised $32 million last year.
Importantly, the FATF has made it clear that its new guidelines are targeted at fostering consumer protection.
Yury Pripachkin, the president of the Russian blockchain and cryptocurrency association fully supports the decision of the FATF.
The official has reportedly reiterated that increasing oversight for cryptos will sanitize the industry and make cryptocurrency-powered businesses more credible, thereby fostering global adoption.