The Russian financial regulatory agency contacted the Financial Action Task Force (FATF) to request an intergovernmental initiative that could control the supply and flow of cryptocurrencies. Pavel Livadny, the Deputy Director of FMS, confirmed that they are endeavoring to secure the participation of all the FATF member countries to design a unified legal parameter for the thriving industry, citing money laundering as the primary concern.
Russia’s Financial Monitor Service (FMS) is seeking the intervention of a global financial watchdog to regulate cryptocurrencies.
FATF, a global financial regulatory body, in June announced that it would build global-binding policies for cryptocurrency exchanges. Russia is among those 36 FATF members that are building regulatory frameworks for their local crypto industries, with some in the crypto community criticizing their efforts as nothing but knee-jerk reactions to the sudden bitcoin boom.
Decentralized assets like bitcoin can be purchased, sold or exchanged semi-anonymously without a central authority’s approval. A global crackdown against malicious underground revealed its use in some widespread crimes, including drugs trafficking, money laundering and in limited cases terrorism financing. The cases alerted agencies across the world, leading them to develop tentative legal provisions to regulate the crypto industry.