Russia Grants Banks Limited Crypto Operations Under Strict Regulatory Framework

In a significant regulatory shift, Russia has authorized domestic banks to engage in limited cryptocurrency operations under stringent conditions, as announced by the Bank of Russia. Vladimir Chistyukhin, First Deputy Chairman of the Bank of Russia, emphasized that this cautious approach aims to prevent commercial banks from making cryptocurrency trading their primary focus, while still allowing controlled involvement. He stated, "We concluded that excluding banks from such operations would be unjustified" after consultations with the banking sector, highlighting the need for strict capital and reserve standards to mitigate risks.

The new framework requires banks to comply fully with anti-money laundering (AML) and counter-terrorism financing regulations, ensuring transparency by identifying all parties and tracing fund sources. Transactions will be monitored for illegal activities, with penalties for non-compliance. Additionally, the Bank of Russia plans a comprehensive audit of cryptocurrency holdings and activities in early 2026, cross-referencing data from miners, exchanges, and the Federal Tax Service to identify discrepancies.

This move follows an experimental legal regime launched in early 2025, which allowed wealthy individuals and corporations (with at least 100 million rubles in deposits and 50 million rubles in annual earnings) to use crypto for international settlements. Despite internal government divisions—with some ministries pushing for clearer regulations and the central bank favoring caution—Russia aims to introduce a full cryptocurrency law by 2026, establishing a licensing system for exchanges and clarifying roles for crypto service providers.