The Bank of Russia, in a significant policy shift, is advocating for the swift legalization of cryptocurrency exchanges under a government-monitored framework, primarily aimed at facilitating foreign trade and curbing financial crimes. This move comes amid mounting economic pressure and restricted access to Western financial systems due to international sanctions.
Vladimir Chistyukhin, first deputy chairman of the Bank of Russia, emphasized the urgency during a parliamentary finance meeting, stating that the absence of clear rules has allowed informal "crypto kiosks" to flourish, where citizens exchange rubles for digital assets without oversight. He argued that legalizing and regulating these platforms would help block channels for money laundering and terrorist financing, while also enabling Russia to experiment more openly with cross-border settlements in cryptocurrencies.
The central bank's stance marks a departure from years of opposition, where it previously insisted that only the ruble—and its upcoming digital version—should serve as legal tender. However, in response to sanctions isolating Russian banks, regulators approved an "experimental legal regime" in 2023, allowing limited use of Bitcoin and other digital assets for international trade. Progress has been slower than expected, with many firms relying on older financial workarounds or citing legal uncertainty as a barrier.
Finance Minister Anton Siluanov has joined the push, confirming that his department supports the legalization effort. He stated, "We believe this market needs to be legalized and regulated," noting that clearer rules would help organize the crypto sector and provide formal oversight. Despite this warming stance, officials clarified that the proposed system will cater only to corporations and accredited investors, excluding ordinary citizens, and discussions include potential criminal penalties for unauthorized crypto trading to ensure state control over the digital asset market.
This pragmatic approach reflects Russia's strategy to reduce dependence on Western financial networks, using blockchain technology as a geopolitical tool rather than promoting open finance. The goal is to create a state-curated digital economy where crypto serves strategic interests in international trade.
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