Russian lawmaker accuses Western spies of using crypto for funding

A senior member of the Russian parliament has alleged that Western intelligence agencies are using cryptocurrency to finance their covert operations in Russia. He also criticized the lack of crypto regulation in the country, which he said could help prevent such activities.

Crypto is the only way to refill the wallets of foreign agents

Andrei Lugovoy, the First Deputy Chairman of the State Duma’s Committee on Security and Anti-Corruption, made the remarks during a speech in parliament on February 20. He claimed that cryptocurrency is the only way to refill the wallets of foreign agents, who are instruments of soft power and answer to the US State Department and the British Foreign Ministry.

He said that these agents are sophisticated and organized by the intelligence services, and they are not so idiotic that they would transfer money from an account in Geneva to Moscow. He added that cryptocurrency is now the only way to refill their wallets.

Lugovoy did not provide any evidence or examples to support his accusations, but he suggested that crypto regulation could help prevent such activities. He said that two years ago, on the initiative of the committee chairman, they created a crypto regulation working group, but nothing has happened since then.

Russian crypto policy is bad to disgusting

Lugovoy is not the first to express frustration over the slow progress of crypto regulation in Russia. Earlier this month, he called Russian crypto policy bad to disgusting, and said that it plays into the hands of the West’s sanctions policy against the country. He said that it undermines the anti-sanctions policies of the Russian government.

Russia has been struggling to adopt a clear and comprehensive legal framework for crypto for years, as different ministries, law enforcement agencies, and the crypto-skeptic Central Bank have different views and interests on the matter. The only law that has been passed so far is the law on digital financial assets, which came into force in January 2021, but it only defines some basic terms and does not address many important issues, such as taxation, mining, and trading.

Foreign agents must report their income and expenses

Lugovoy also called for Russian authorities to identify foreign agents and their relatives, and force them to report annually on their income and expenses. He said that many foreign agents in Russia have apartments and dachas (countryside holiday homes), and they act under the direction of foreign intelligence services and embassies. He concluded that foreign agents are still allowed to move around Russia unchecked.

Russia has a controversial law that requires individuals and organizations that receive foreign funding and engage in political activities to register as foreign agents, and to disclose their status and sources of funding in their publications and communications. The law has been widely criticized by human rights groups and activists, who say that it is used to stigmatize and silence independent voices and civil society.