The head of Russia’s Federal Financial Monitoring Service (Rosfinmonitoring) recently reported to President Vladimir Putin that the agency is monitoring over 25,000 crypto users with sophisticated tools capable of detecting illegal activity. Yury Chikhanchin, the agency’s chief, expressed concern over the growing use of cryptocurrencies in Russia and suspects their use in money laundering. Rosfinmonitoring has identified 10 financial organizations it believes are assisting these participants. The agency has conducted over 120 crypto-related investigations, resulting in over 60 criminal prosecutions. The agency has also developed a de-anonymizing solution for Bitcoin and expanded its capabilities to monitor over 20 blockchain networks. Chikhanchin claims that the same tool is now undergoing testing at other government agencies. Regulators from other Commonwealth of Independent States countries have also requested the solution. Earlier this week, leaders from Russia’s cryptoasset and blockchain industry called for a face-to-face meeting with Putin to discuss crypto regulation.
