PANews reported on May 19th, citing Bits.media, that German Neglyad, Deputy Head of the Russian Financial Supervisory Service (FSS), stated that the agency hopes to regulate cryptocurrency exchanges with the same stringent standards as banks to eliminate the "regulatory arbitrage" between the strict oversight of banks and the regulatory gap in cryptocurrency trading. Neglyad pointed out that criminals could exploit this loophole to launder money, and this weakness must be eliminated. He stated that some market participants oppose strict regulation out of fear that their businesses will move into a gray area, but the FSS believes this concern is unfounded, and regulating according to banking standards is "normal and civilized practice." He cautioned that the Financial Action Task Force (FATF) requires countries to regulate cryptocurrency circulation, and if Russia does not establish a control mechanism, it may face a rating downgrade. Currently, Russia's membership in the FATF remains suspended. The FSS supports the government's proposed cryptocurrency market regulation bill, believing that there is no need to relax the provisions. The bill has passed its first reading in the State Duma and is preparing for its second reading.