Russians Plan To Seek Assistance from RCO for Tracking Transactions of Crypto

Rosfinmonitoring or the Russian Federal Financial Monitoring Service intends to track all incoming and outgoing transactions of crypto. For this purpose, the tender was floated for engaging a contractor with the required skill set a firm owned by Sberbank namely RCO has been engaged for the task.

Russia has finally come up with a solution to employ checks and balances upon the incoming and outgoing crypto transactions.

Rosfinmonitoring, which is the financial regulatory authority of Russia was seeking to engage a firm for tracking crypto transactions. A tender to this effect was floated and finally, a contract has been selected by Rosfinmonitoring for the job. The firm that will be carrying out the task of tracking the transactions is the project of Rambler Internet Holding. On the other hand, Rambler Internet Holding is an entity 100% owned and operated by a major Russian bank called Sberbank.

As per the Russian Public Private Procurement Portal, it could be seen that the proposed project’s price cap is kept at US$ 200,000. It has been proposed that the funds will be utilized by the hired firm for monitoring the crypto transactions. Rosfinmonitoring was of the view that for the purposes of compliance, it is necessary to create a transparent environment. Aimed with the objective of ensuring transparency and compliance, the firm has been engaged, told Rosfinmonitoring.

As regards the hired firm’s responsibilities, Rosfinmonitoring told that the firm would be looking at multiple aspects of crypto transactions. For instance, the firm will need to make sure that it keeps records of outflows of digital transactions and their end beneficiaries. Similarly, the incoming transactions too will be monitored and their beneficiaries will be duly documented by the firm. RCO will also be maintaining a list of suspicious or illicit wallets which are involved in illegal activities. For instance, it is one of the responsibilities of RCO to identity wallets that are sources of money laundering and terrorism financing.

Rosfinmonitoring believes that by doing so, Russia will be able to shortlist most of the crypto criminals. Once the criminals are identified, it would then be the responsibility of the Russian Government to deal with them accordingly under law.

It was further apprised that for ensuring coordination and efficient working of RCO, blockchain networks too will be taken into confidence. Their assistance will be required by RCO for the submission of user-oriented data. This data will then be examined and scrutinized to identify the criminals. However, this aspect of blockchain assistance hasn’t been confirmed yet. In fact, for data sharing, the Russian Government will have to get itself involved directly and request the networks. There is also the possibility that some might agree to cooperate while others will refuse to do so. However, those networks which are operating in the Russian lands, will not be spared and will need to submit the required data.

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