Market News

Russia Embraces Crypto: New Licensing Proposal for Banks

The Bank of Russia has announced a significant pivot in its approach to cryptocurrency regulation.

Central Bank Governor Elvira Nabiullina has proposed a notification process that would allow banks and brokerage firms to obtain licenses to operate crypto exchanges.

This initiative aims to utilize the existing banking framework for enhanced protection against money laundering and fraud in the digital assets market.

The proposed regulations classify cryptocurrencies and stablecoins as “currency valuables,” allowing ownership and trade while maintaining restrictions on their use as a domestic payment method.

Nabiullina emphasized a cautious approach, suggesting that banks initially limit their risk exposure in this sector to just one percent of their capital.

Qualified investors would have unrestricted access to crypto assets, but non-qualified investors would be limited to a maximum investment of 300,000 rubles annually through a single intermediary.

This move positions banks as primary regulated gateways for digital asset trading in Russia.

Over the past few years, Russia's stance on crypto has evolved from outright bans to regulated acceptance, indicating a desire to control and tax crypto activities domestically.

By 2026, the central bank expects to finalize a comprehensive legal framework that will enforce penalties on unlicensed intermediaries operating outside of Russia's regulations.

This shift underscores Russia's intent to ensure its financial system adapts to the emerging digital economy while retaining oversight and control.