How the State Can Track Your Crypto Assets — and What to Do About It

In Russia, interest in cryptocurrencies has surged amid economic instability. According to the Central Bank, Russians' crypto transaction volume reached ₽7.3 trillion over the past six months — up 51% from the previous two quarters. As many users circumvent restrictions via P2P exchanges of stablecoins like USDT or new coins like Toncoin (TON), authorities have stepped up control. In 2024, Russian banks reported suspicious crypto-related transactions 1.3 times more often than the year before. So how exactly are these digital movements being tracked, and what precautions can you take to stay within the law?

Mechanisms for Monitoring Crypto Transactions in Russia

Bank Monitoring & Law 115-FZ (Anti-Money Laundering)

Banks are the first line of defense. Under Russia’s AML law (115-FZ), they must scrutinize every client transaction for unusual patterns — regular transfers without clear purpose, cross-border receipts, suspicious moves not in line with a client's profile, and transfers to crypto exchanges or P2P platforms. If a transaction raises red flags, the bank freezes it and requests proof of legitimacy. If sufficient proof isn’t provided, the account may be blocked and reported to Rosfinmonitoring (the financial intelligence agency).

Banks use various tools — beyond internal compliance, they're instructed to monitor public online sources. If your card details appear on crypto-related platforms, that alone can trigger scrutiny. The Central Bank also urges real-time monitoring of transfers between personal accounts and corporate cards tied to shell companies used in unofficial crypto exchange schemes. If a client sends funds to such accounts or receives money from ‘droppers’ (people offering their accounts for cash-outs), the bank may limit or block the transfers.

Since spring 2023, Russian authorities also rely on a ‘drop list’ — a database of suspicious accounts used for fraud or cash-outs. If your account ends up in this list, your peer-to-peer transfers are restricted to ₽100,000 per month unless you show up in person with documentation. Lawyers warn that even legitimate users can inadvertently be penalized if their counterparty is on the list. In short, selling USDT via card transfer can lead to a frozen account if the buyer is suspected of wrongdoing.

‘Transparent Blockchain’ & Analytical Platforms

Beyond banks, Rosfinmonitoring employs its powerful tool: ‘Transparent Blockchain’ — a domestic platform for analyzing cryptocurrency transactions. Over the first nine months of 2023, it logged 185,000 crypto transfers involving Russian users — three times more than the previous year. According to Rosfinmonitoring head Yuri Chikhanchin, it tracks over 30 cryptocurrencies and maintains a database of nearly 19,000 ‘gray-wallets’ linked to illicit activity.

The platform analyzes public blockchain data, mapping connections between wallets. Its heuristics can reveal connections — if multiple addresses repeatedly send funds to each other or to the same account, they likely belong to one owner. Authorities have credited it with deanonymizing Hydra, a major darknet marketplace, even before the platform was officially deployed — revealing who received payments for illicit goods.

Importantly, blockchains are inherently transparent — transaction histories are public, and advanced programs can graph transfers, assess ‘cleanliness’ of wallets, and even match crypto moves to fiat flows. In a pilot program with five top Russian banks, ‘Transparent Blockchain’ is being integrated into client systems to cross-check on-chain and on-balance-sheet activity. If you regularly receive ruble transfers from various people and then convert equivalent amounts to crypto, that flags as potential P2P exchange activity. This integration is expected to be completed by late 2025.

Internationally, ‘Transparent Blockchain’ resembles platforms like Chainalysis or Crystal Blockchain, used by agencies in the U.S. and Japan to sift through massive blockchain data and conduct multi-currency transaction analysis. Blockchains no longer guarantee anonymity — authorities are increasingly adept at untangling even complex transaction chains.

Cross-Chain Analysis & Mixing Services

Even if users try to obfuscate transactions by converting between blockchains or moving funds across chains, modern analytics can track that too. Analysts often use machine learning combined with manual investigation: algorithms prune irrelevant data, while experts trace suspicious patterns. In rare cases, blockchain vulnerabilities have exposed wallet owners. Also, crypto mixers — designed to mix for privacy — are increasingly prohibited as money laundering facilitators. For example, in 2022, the U.S. sanctioned Tornado Cash, and many jurisdictions prosecute users of such tools.

Why USDT, TON, and ‘Suspicious’ Coins Get Extra Attention

USDT (Tether) is a dollar-pegged stablecoin widely used in Russia’s P2P trades as a digital alternative to cash. Buying USDT with rubles is the primary way to convert to crypto after restrictions on cross-border transfers. Regulators scrutinize these transfers — USDT runs on public chains like Ethereum or Tron, making every move traceable. If you convert USDT to cash (e.g. to your card), your wallet can easily be linked to you. Banks also look for patterns — such as regular receipts of ~₽100–200k from multiple people, which suggests P2P trading. Such accounts are immediately monitored.

Toncoin (TON) — Telegram’s blockchain currency — gained popularity across the CIS from 2023–2025. Pavel Durov even pitched TON projects to Kazakhstan’s authorities, and TON officially trades on licensed Kazakh exchanges. Many users assume TON is more private due to its Telegram integration — but Toncoin also runs on a public blockchain. If you buy TON on an exchange, especially once Russian platforms emerge, or exchange it for other crypto, those transactions can be tracked. If your Telegram wallet gets linked to your Telegram ID, deanonymization becomes easier through data leaks. Bottom line: neither USDT nor TON are invisible — they are tracked like Bitcoin and Ethereum, and rising popularity only increases monitoring.

How Other CIS Countries are Tightening Crypto Oversight

Russia isn’t alone — other CIS states are tightening control too. Belarus, for example, issued a decree on September 17, 2024 prohibiting residents from buying or selling crypto on foreign platforms. Now, all transactions must go through local platforms registered within the High-Tech Park (HTP). This is presented as a measure to protect citizens and combat money laundering. Off-platform P2P trades are illegal. The ban took effect immediately; by June 2025, penalties for violations will be proposed. While Belarusians can still trade on global exchanges (if they first buy through a HTP resident), direct transfers off-platform are blocked. Belarus is effectively building a closed ecosystem — fiat conversion must occur via state-controlled operators.

In Kazakhstan, new measures require banks to block transfers to crypto exchanges without local licenses. The Astana International Financial Centre (AIFC) houses licensed exchanges like Binance and Bybit. Banks must reject transfers to foreign exchanges, report such attempts to financial intelligence agencies, and flag transfers over $1,000 with enhanced verification requirements. Users with multiple cards or frequent transfers to unregistered exchanges may face restrictions — limited to three transfers per month, capped at 100,000 tenge (~₽20k).

Similar controls are emerging across the region:

• Uzbekistan allows crypto operations only through national exchanges; foreign platforms without local licenses are blocked.
• Kyrgyzstan and Armenia are discussing KYC mandates and data-sharing rules for crypto exchanges.

Across the CIS, authorities want visibility over crypto entry and exit points. Where users once casually traded coins via Telegram, now financial intelligence units are tracking every move.

A Simple Guide: How to Stay Legal and Protect Your Privacy

AML law 115-FZ obliges banks to monitor unusual transactions — but you can minimize risk by following these practical tips:

1. Establish official status if you trade or mine regularly. If you generate income from crypto, consider registering as a sole proprietor or self-employed with a financial services registration. This builds trust with banks and helps demonstrate legitimacy.
2. Use a separate account — not your salary card — for P2P crypto transactions. Mixing personal and crypto inflows raises red flags. Open a separate account — or better, a business account — so crypto-related funds don't appear as incongruent income.
3. Provide clear transaction descriptions. Avoid empty or vague payment purposes. Use neutral, boilerplate descriptions like ‘loan repayment’, ‘gift’, or ‘family support’. Do not mention ‘crypto’ or ‘Bitcoin’ in remittance descriptions.
4. Keep documentation. Save screenshots of trades, chat confirmations, exchange history. Log who sent funds, why, and when. If your account is flagged, having organized records can quickly resolve issues.
5. Respond to bank inquiries promptly and honestly. If flagged, ignoring outreach can lead to account closure or being added to official watchlists. Provide requested documents and explanations swiftly.
6. Avoid shady schemes. Never use anonymous Telegram ‘cash-out’ services or mixers. These often involve fraud or money laundering — your account could end up blocked or frozen. Stick to reputable, P2P-verified platforms.
7. Stay updated on regulation changes. Crypto laws change fast. Know current limits, KYC requirements, and reporting obligations. For example, Russia is discussing crypto asset disclosure mandates — be informed before it's enforced.

Conclusion

Though oversight has intensified, crypto remains a viable financial tool — if used responsibly. Authorities are tracking banking and blockchain activity closely, but ordinary users who abide by the law and report income accurately have little to fear. In the digital era, privacy is nuanced — but smart, lawful behavior protects both your assets and your freedom.