The Bank of Russia and Rosfinmonitoring have begun developing a platform that identifies the connection between client transactions with fiat currencies and virtual assets. Ilya Bushmelev, director of project portfolio management at Innotech, spoke about the new system.

Speaking at the forum “Topical AML/CFT Issues” organized by Rosfinmonitoring, Bushmelev clarified that five large banks are already participating in the platform testing project, and the tests should end at the end of May 2024.

The top manager of the Innotech company, which is related to the development, assured that as a result of the pilot project, banks will be able to receive tools for conducting “Know Your Crypto Client” and “Know Your Crypto Transaction” checks:

“The task that faces us is to identify the connection between fiat and crypto transactions. Credit institutions have every opportunity to work with fiat, but cryptocurrency transactions are now still considered separately.”

Ilya Bushmelev is convinced that the new service will make the regulation of the crypto market more effective. In turn, the head of the Rosfinmonitoring department, Alexander Kuryanov, confirmed at the same session that financial market participants are actively testing scenarios for connecting clients’ fiat transactions with transactions in non-fiat assets.

Earlier, the director of the financial policy department of the Ministry of Finance of the Russian Federation, Alexey Yakovlev, said that the department is waiting for the adoption of legislation on the regulation of cryptocurrencies this year.