The Central Bank of Russia plans to mandate real-name registration for cryptocurrency transactions and comprehensively strengthen the supervision of fund flows.

The Central Bank of Russia announced plans to require all cryptocurrency traders to complete Know Your Customer (KYC) verification and restrict unregistered users from withdrawing cryptocurrency assets from domestic platforms, aiming to strengthen regulation of the domestic cryptocurrency market. According to the proposed rules, Russia will require domestic exchanges to fully implement real-name registration and prohibit users from transferring funds from domestic custodial wallets to overseas non-custodial wallets. Simultaneously, regulators plan to require residents to declare their overseas cryptocurrency holdings to enhance monitoring of capital outflows. Central Bank Deputy Chairman Vladimir Chistyukhin stated that the new regulations will not prohibit individuals from holding or using cryptocurrency assets, but the focus is on improving transparency and compliance to prevent money laundering risks. This policy is expected to be implemented in July this year along with a new round of cryptocurrency regulatory legislation. Analysts believe this move reflects Russia's attempt to control capital flows by strengthening cryptocurrency regulation amidst economic pressure. (DL News)