To prevent capital flight during economic crises, the Central Bank of Russia suggests enhancing cryptocurrency monitoring.

The Central Bank of Russia (CBR) has called for enhanced monitoring of P2P transactions, including cryptocurrency trading, as a "special economic measure" to prevent significant outflows of foreign exchange while Russia is facing economic sanctions. The recommendation includes stricter supervision of cryptocurrency transactions, as cryptocurrency trading is listed as one of the tools for capital outflow from Russia.

The Central Bank of Russia (CBR) has called for enhanced monitoring of P2P transactions, including cryptocurrency transactions, as part of the "special economic measures" to prevent massive outflows of foreign exchange as Russia faces economic sanctions. The recommendation includes stricter supervision of crypto transactions, as they are listed as one of the tools for capital outflow from Russia.

According to a report, the recommendation was sent by CBR Deputy Chairman Yuri Isaev on the 18th to banking institutions, instructing them to closely monitor customer "abnormal behavior," especially actions by customers attempting to withdraw assets from Russia to unfriendly countries or organizations (currently 48 listed on the government's list, including the United States, United Kingdom, and all EU countries). Any "abnormal" transaction activities and unusual spending patterns, as well as any withdrawals through digital currencies, should be closely monitored, and if necessary, suspicious transactions must be blocked.

Following the start of the Russia-Ukraine war, the United States and the European Union imposed several rounds of economic sanctions on Russia, prompting Russia to retaliate in a similar manner against countries like the US and EU, leading to special measures restricting the outflow of foreign currency. Measures include limiting foreign currency transactions of Russian citizens to $5,000 and setting a cash exchange limit of $10,000 for people traveling abroad. Residents purchasing real estate, securities, and other assets in "unfriendly" jurisdictions require government authorization.

Aleksey Voylukov, Deputy Chairman of the Russian Banks Association, stated that CBR's recommendation aims to prevent the evasion of sanctions through asset outflow schemes, particularly via cryptocurrency exchanges.

Currently, at least over 10 million Russian people collectively hold around 5 trillion rubles (approximately $630 billion) in cryptocurrencies, making the Central Bank's proposed measures not surprising considering the amount. With Visa and Mastercard cards disabled and strict transaction restrictions imposed by the Russian government, Russian people are left with cryptocurrencies as the sole option for fund transfers.

It was initially rumored that the majority of cryptocurrency holders in Russia were political and business elites targeted by Western sanctions, but amid inflation and ruble depreciation in Russia, a significant number of citizens are opting for cryptocurrencies to preserve assets and hedge risks.

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