Russia’s Central Bank Proposes Stricter Regulations for Cryptocurrency
Russia’s central bank is taking a firm stance against unregulated cryptocurrency activities within the country. The move comes as part of a broader push to bring digital assets under a more structured legal framework. This proposal aligns with calls from major financial institutions, including the Bank of Russia, to implement stricter measures to prevent unauthorized crypto operations.
Governor Elvira Nabiullina, head of the Central Bank of Russia (CBR), emphasized the need for legal oversight during a recent forum focused on financial cybersecurity. She highlighted that fraudsters are exploiting the lack of regulation in the cryptocurrency market, and a systemic solution involves introducing liability for transactions outside the regulated segment.
“We have made our proposals and are discussing them with the government,” Nabiullina stated, according to reports by TASS. The CBR is working on legislation that would penalize those engaging in unregulated crypto activities.
The governor also pointed out that Russians who sell cryptocurrency often face severe consequences, such as having their bank accounts suspended. This happens because the money received from these transactions can sometimes be linked to fraudulent or stolen funds. As a result, many sellers become unwitting participants in scams.
According to Rossiyskaya Gazeta, over 1,800 individuals have contacted law enforcement agencies in less than three months to request the restoration of their banking access. Many of these cases involve people who sold cryptocurrency and were added to a state-maintained database of suspicious transactions.
Major Russian Bank Calls for Faster Crypto Legalization
While the CBR pushes for tighter regulations, a leading Russian bank has called for faster legalization of cryptocurrency transactions. Andrey Kostin, CEO of VTB, one of Russia’s largest banks, urged authorities to accelerate the process during a recent conference.
Kostin noted that a significant number of clients, including major exporters, are now requesting payment options using cryptocurrency. He argued that this shift is unavoidable and that regulations must be introduced quickly. VTB, which is majority state-owned, has already announced plans to launch crypto trading via brokerage accounts once the market is properly regulated.
The push for crypto legalization is driven by several factors, including the need for international settlements. Russia has been exploring ways to bypass Western-imposed financial restrictions, particularly in the context of the ongoing conflict in Ukraine. In October, the Ministry of Finance and the Central Bank agreed to legalize cryptocurrency payments in foreign trade.
Moscow aims to replace an experimental legal regime for such transactions with a full-fledged legal framework that includes investment and trading activities. This framework will be based on the new regulatory concept proposed by the CBR in late December, which envisions recognizing cryptocurrencies and stablecoins as “monetary assets.”
Industry Concerns Over Foreign Exchange Restrictions
Industry analysts warn that once Russia introduces domestic regulations, it may restrict access to global crypto exchanges. According to interviews with RBC, established foreign platforms like Bybit or OKX could be blocked by the end of the year.
Nikita Zuborev, a senior analyst at Bestchange.ru, believes that foreign exchanges will be restricted after Russia begins licensing domestic crypto service providers. This move could significantly impact the availability of international trading platforms for Russian users.
Despite these concerns, the overall trend suggests that Russia is moving toward a more structured approach to cryptocurrency. With both the CBR and major banks pushing for regulation, the country is likely to see a more defined legal framework for digital assets in the coming months.