Russia's central bank plans to require de-anonymization for all crypto transactions.

Russia to Mandate KYC for All Crypto Traders, Ban Transfers to Foreign Non-Custodial Wallets

Russia's central bank plans to require identity verification for all cryptocurrency traders, according to a first deputy governor. Under a crypto regulatory framework set to take effect in July, the bank wants to force domestic exchanges to use KYC protocols and de-anonymize Russian crypto trading.

Citizens will be required to report overseas crypto holdings to the Federal Tax Service, but the bank will not prevent them from continuing to hold crypto in foreign wallets. However, the central bank plans to ban transfers of funds from Russian custodial wallets to foreign non-custodial wallets. All funds must first be moved to officially recognized Russian crypto depositories and exchanges, which will be legally required to verify customer identities. The central bank said it will not confiscate citizens' crypto assets or penalize them for holding them. The bank argues that non-custodial wallets make it difficult to establish controls consistent with AML and KYC rules.