The Russian Federal Financial Monitoring Service has reported an astonishing threefold increase in cryptocurrency transactions in the first nine months of 2023 compared to the same period in 2022. According to Yury Chikhanchin, the head of the Russian Federal Financial Monitoring Service, the number of cryptocurrency transactions has surged to over 185,000 this year, marking a substantial rise from the 60,000 transactions recorded in 2022.
This remarkable growth in cryptocurrency usage has raised concerns, as Chikhanchin pointed out that illicit activities, including drug trafficking, terrorism funding, and corruption, are increasingly taking advantage of cryptocurrencies. In response to these challenges, he emphasized the urgent need for comprehensive regulation of cryptocurrencies.
Chikhanchin also highlighted a valuable tool, the Transparent Blockchain, which enables tracking of cryptocurrency transactions. Developed in collaboration with VTB, this software provides transparency by allowing users to trace the flow of funds and identify the sender and receiver.
As cryptocurrency continues to gain popularity in Russia, the government faces mounting pressure to establish clear and effective regulations to combat illicit activities and protect the financial system. The surge in cryptocurrency transactions is a clear signal that regulatory action is imperative to ensure the responsible use of digital assets.
