Russian banks will be allowed to conduct cryptocurrency operations under strict conditions, the Central Bank announced Friday, marking a cautious step toward integrating digital assets into the country’s financial system.
First Deputy Chairman of the Bank of Russia Vladimir Chistyukhin said the government will set capital and reserve limits to ensure cryptocurrency does not become a primary banking activity. The decision comes after consultations with commercial banks and financial experts.
Strict Oversight and Regulatory Conditions
Chistyukhin emphasized that all transactions involving digital assets will be subject to anti-money laundering (AML) and counter-terrorism financing regulations. Financial institutions, including banks, brokers, and exchanges, must ensure the transparency of transactions, verify customer identities, and identify the sources of funds.
“We believe that all anti-money laundering mechanisms should also apply to investments in cryptoassets. All individuals must be identified, investments must be clear, and the sources of funds must also be transparent,” Chistyukhin said.
Banks will be required to monitor suspicious or illegal activity and refuse services to customers who do not meet legal requirements for crypto investments. Regulators expect the measures to minimize risks associated with illicit financial flows through digital currencies.
Limited Domestic Use, International Access
Under the new framework, cryptocurrency holders in Russia will be allowed to sell their digital assets through the national infrastructure. Other types of transactions may be carried out using foreign platforms, according to Chistyukhin.
The Central Bank clarified that the policy does not represent a full liberalization of the crypto market but rather a controlled integration that allows regulated entities to participate without shifting the financial system’s focus away from traditional banking.
Russia has historically taken a cautious stance toward cryptocurrency. Authorities have repeatedly cited concerns over money laundering, terrorism financing, and capital flight. The new policy reflects a compromise between security priorities and growing domestic use of digital assets.
Rising Use of Digital Assets
Chistyukhin noted that approximately 20 million Russians currently use digital assets in their daily lives. The growing scale of participation, he said, was one of the factors influencing the Central Bank’s decision to permit controlled participation by banks.
The Bank of Russia’s conservative approach aligns with broader efforts to regulate the crypto sector globally, where many countries are imposing stricter controls to address transparency and financial stability concerns.
