FSB Seeks Expanded Powers to Request Information from Cryptocurrency Operators

The Federal Security Service of Russia (FSB) has proposed expanding its authority to request information. This time, the agency is seeking the right for its officers to send inquiries to credit institutions, tax authorities, government agencies responsible for real estate registration and transactions, as well as to operators of information systems that issue digital financial assets (cryptocurrencies). The relevant document was published on the federal portal for draft regulatory legal acts.

Who Would Receive These New Powers?

The proposal suggests granting these powers to the First Deputy Director of the FSB, the First Deputy Director and Head of the Border Service, the Deputy Director and Head of the National Anti-Terrorism Committee, the State Secretary and Deputy Director of the FSB, heads of FSB services, chiefs of regional departments, departments within the Armed Forces of the Russian Federation, other military units and formations, as well as their management bodies.

Why Is the FSB Seeking These Changes?

According to the explanatory note, the expansion of authority is necessary due to changes in anti-corruption legislation. Since January 1, 2021, digital financial assets are considered property, and information about them must be included in income declarations. Therefore, to conduct anti-corruption checks, FSB officers need the authority to send requests to operators of information systems where digital financial assets are issued.

Public Discussion and Feedback

The public discussion of this document will continue until November 11, 2021. If you have any suggestions or comments, you can leave them on the document’s page.

Background on Cryptocurrency Legislation in Russia

The law on digital currency was adopted in Russia on July 31, 2020, and came into force on January 1 of the following year. The deadline for submitting the first declarations for those whose income from digital financial assets or digital currency is subject to taxation is April 30, 2022. According to the law, digital currency is not considered a means of payment in Russia, and cryptocurrencies cannot be used to pay for goods and services.