Russian Security Agency FSB Asks Cryptocurrency Firms To Share Their Data With Investigators

The FSB (Federal Security Service) and the MVD (Ministry of Internal Affairs) of Russia have filed review notes dealing with the next crypto bill, constructed on the behalf of the Finance Ministry of the country. Law enforcement institutions are compelling the crypto companies to provide transaction-related information to the investigators to elucidate the terms according to which a seizure can be put on the digital assets.

On 28th April, Izvestia (a native newspaper) reported about the review notes’ content that the police ministry, as well as the security service, filed to the draft of the draft bill of the Finance Ministry regarding digital assets. The Ministry accepted a few of its propositions, whereas the rest of them were discarded. It was emphasized by the Finance Ministry the suggestion of FSB to order the providers of crypto services to provide data not just to the courts, but additionally to the crime investigators.

It was additionally consented that a clarification of a series of requirements related to the organization of the data dealing with crypto transactions was required. MVD made another comment that no procedural details have been noted in the bill over the storage and seizure of the crypto assets. The FNS (Federal Tax Service) also added a proposition to squeeze the requirements for wallets and exchanges that are non-licensed, promoting these things would be considered illegitimate. The respective suggestions were also accepted on the behalf of the Finance Ministry.

The things that were not accepted by the Ministry took into account the proposal of FSB for the mandatory transfer of the mined assets to the authorized exchanges, and the implementation of AML (anti-money laundering) legislation over mining. The Finance Ministry mentioned that the stringent and elaborated regulation would be unfeasible currently because the crypto investors and consumers might get scared by this.

The concept of FNS to prohibit banks from transferring crypto to unauthorized bodies was put on another discussion, as told by the Ministry. As per Anatoly Asakov – the Financial Market Committee’s head at State Duma – the crypto bill’s ultimate draft is anticipated to be provided to the parliament by May.

In the previous week, it was reported by Reuters that the crypto exchange Binance’s regional head consented to provide consumer data dealing with funds donated to Alexei Navalny (the opposition activist) to Rosfinmonitoring (the financial intelligence institution of Russia. The firm categorically denied the respective allegation in a blog post.

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