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The Russian security service wants data to be shared with investigators

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Russia’s Federal Security Service (FSB) and Ministry of Internal Affairs (MVD) have submitted their audit notes on the upcoming “crypto-law” being developed by the country’s Ministry of Finance. Law enforcement agencies are pushing to require crypto firms to share transaction data with investigators and clarify the conditions under which digital assets can be confiscated.

On April 28, the local newspaper Izvestia reported on the content of the review notes submitted by the Security Service and the Ministry of Police on the Ministry of Finance’s draft law “On Digital Currency”. Some of the proposals were reportedly accepted by the ministry, while others were rejected.

The Ministry of Finance backed the FSB’s proposal to oblige crypto service providers to share information not only with courts but also with detectives. It also agreed that there was a need to clarify a number of requirements for storing crypto transaction data.

Another comment came from the MVD, which noted that the bill lacks procedural details for seizing and storing crypto assets. The Federal Tax Service (FNS) has also tabled a proposal to tighten requirements for unlicensed exchanges and wallets — advertising such services would be illegal. These recommendations were also accepted by the Ministry of Finance.

What the ministry did not accept was the FSB’s proposal for mandatory transaction of all mined currencies to licensed exchanges, as well as the application of anti-money laundering (AML) laws to mining.

Related: Russia Adds Crypto to Its Tax Law: Here’s What the Rules Could Look Like

The Ministry of Finance described the “overly detailed and strict regulation” as unworkable at this point in time as it could deter crypto users and investors. The FNS’s idea of ​​banning banks from conducting crypto transactions with unlicensed entities deserves further discussion, the ministry commented.

According to the Chairman of the State Duma Financial Markets Committee, Anatoly Aksakov, the final draft of the “crypto law” is expected to be submitted to parliament in May.

Last week, Reuters reported that the regional head of crypto exchange Binance has agreed to provide Russia’s financial intelligence unit Rosfinmonitoring with customer data potentially linked to donations to opposition activist Alexei Navalny. The company called this claim “categorically false” in its blog post.