Russian President Vladimir Putin stressed the importance of developing more measures to combat illicit cross-border transactions with digital financial assets.

At a meeting of the Attorney General’s office on Wednesday, Putin said that “criminals are increasingly using digital financial assets,” which requires special attention from the government.

Putin said, “There is another point – completely new, but important: We must take more measures to suppress the illegal cross-border movement of digital financial assets.” The president ordered local law enforcement agencies, as well as the Federal Service of Financial Supervision or Rosfinmonitoring, to devote their full attention to the issue.

Since Putin did not delve into the specifics of the context of illegal cross-border transactions using digital assets, it now appears unclear exactly what he was referring to. Nikita Sushnikov, a former senior assistant at Deloitte CIS and director of Alfacash, told Cointelegraph:

This is not the first time that the president has asked the Russian police and financial intelligence unit to pay special attention to cryptocurrencies in such a negative context. However, it is unclear what is meant by “cross-border” crypto transactions, which are of a global nature. How can the police file a complaint? ”
In January 2020, Russia passed the largest cryptocurrency law, on digital financial assets, and officially banned payments in cryptocurrencies such as Bitcoin in the country. The Russian government has also worked on separate initiatives to impose restrictions on foreign payment services and digital wallets such as AliPay and WeChat.

Putin’s recent remarks on illegal cross-border digital asset transactions indicate the somewhat escalating relationship between Russia and the United States.