Russia to Make ID Verification Compulsory for Crypto Users

Wilfred Michael 

Wilfred Michael

News reporter

07 March 2019,
20:33
Russia to Make ID Verification Compulsory for Crypto Users

According to Anatoly Aksakov, the Financial Market Committee of Russia State Duma is weighing the introduction of a compulsory identification process for citizens who want to use cryptocurrencies.

The Committee Chair revealed the latest development in an interview with a local news agency, Izvestia, explaining that such a process will go a long way in reducing corruption as well as the number of money laundering cases involving the use of cryptocurrencies.

Moving further, Aksasov admitted that his agency is yet to define what identity verification mechanism will be suitable to cryptocurrency transactions, though any chosen method will likely result to further changes being made to the bill “on Digital Financial Assets” which was released earlier this week.

If the mandatory verification is introduced, then Russian citizens will have to complete it before they can convert funds from a local bank account to cryptocurrencies on a crypto wallet or exchange.

Authorities will also regard as illegal, anyone transacting cryptocurrencies with unverified persons or using private cryptocurrencies that do not comply with the country’s regulation.

In some cases, too, offenders could face the money-laundering punishment of fifteen years imprisonment for engaging in crypto-related theft as stated by the Russian Supreme Court ruling in February.

Although regulation in Russia has perhaps taken a little while to arrive, the last couple of weeks brought some regulatory clarity to Russia’s cryptocurrency and blockchain ecosystem.

As Stmarket.co reported last week, the country’s parliament adopted the first set of crypto laws earlier this month in obedience to an order made by President Vladimir Putin while Oleg Nikolaev, a member of the parliament, also hinted that the country could launch an oil-backed coin soon.

With the case for mandatory identification for crypto users now also on the table, we could see a new crypto regulation rolled out in Russian in the coming months.

 

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