Russian Regulator Monitors 25,000 Crypto Users with Sophisticated Tools

Russian Regulator Monitors 25,000 Crypto Users with Sophisticated Tools

Overview of the Article

  • The Russian anti-money laundering regulator is monitoring over 25,000 crypto users.
  • Rosfinmonitoring has conducted 120 crypto-related investigations, leading to over 60 criminal prosecutions.
  • The body is using a de-anonymizing solution in conjunction with VTB Bank to monitor transactions on various blockchain networks.

Russian Anti-Money Laundering Regulator Monitoring Crypto Users

The top Russian anti-money laundering regulator, Rosfinmonitoring, says it is “monitoring” over 25,000 crypto users – and claims it has sophisticated tools that let it detect illegal activities. The agency’s head Yury Chikhanchin recently held a meeting with President Vladimir Putin regarding cryptocurrencies. He noted that the volume of use was growing and expressed concern about its potential for money laundering. Rosfinmonitoring has reportedly conducted around 120 investigations so far and led to more than 60 criminal prosecutions.

Tools Used by Rosfinmonitoring

Rosfinmonitoring has been making use of blockchain analytics software to increase its monitoring capabilities. In 2020, the agency partnered with VTB Bank to use a de-anonymizing solution which initially allowed them to monitor BTC transactions on the Bitcoin blockchain protocol. Since then they have expanded their software’s capabilities and can now monitor transactions on more than 20 different blockchains. Furthermore, other government agencies such as the Ministry of Internal Affairs are testing out this same tool.

Sharing Solutions Across CIS Countries

Yury Chikhanchin also mentioned that regulators from other Commonwealth of Independent States countries have asked for assistance from Rosfinmonitoring in order to make use of their de-anonymizing solution. This indicates that Russia may be looking into extending its crypto monitoring operations beyond just domestic jurisdictions.


Overall, it appears that the Russian anti-money laundering regulator is taking cryptocurrency regulations seriously and is utilizing advanced technology to detect any illegal activities related to digital assets within its jurisdiction. While there are still many questions surrounding how effective these measures will be in combating money laundering schemes involving cryptos, it is clear that Russia is not shying away from investing significant resources into enforcement actions against illicit activity in this space.