- The Russian central bank seeks to legalize crypto exchanges, advocating for rapid approval under strong government oversight.
- Officials believe that regulation can help mitigate money laundering and facilitate foreign trade using cryptocurrencies.
- Vladimir Chistyukhin, first deputy chairman of the Central Bank of Russia, emphasized the urgency for laws to combat terrorism financing and illicit financial activities in a recent meeting.
Moscow — In a notable pivot for Russia’s financial regulation, the Bank of Russia (CBR) is pushing for the legalisation of crypto exchanges—particularly those converting Russian rubles into digital currencies—under stringent government oversight. The shift marks a sharper turn in the country’s stance toward cryptocurrencies, as Moscow balances Russia’s growing need for alternative payment channels with long-standing caution about crypto’s risks.
From Resistance to Regulation
For years, the Bank of Russia resisted broad use of digital coins within Russian borders, holding fast to the view that only the ruble—alongside its planned digital version—should serve as legal tender. Domestic payments in cryptocurrencies were prohibited by law and digital assets were treated as investment objects rather than currency. But now, under mounting pressure from Western sanctions, restricted access to traditional financial protocols, and the search for alternative cross-border payment channels, Russia appears to be recalibrating. The CBR has signalled that it wants crypto exchange operations legalised quickly, so they can be caught within a formal regulatory framework. During a hearing of the Federation Council’s Committee on Budget and Financial Markets, First Deputy Chairman Vladimir Chistyukhin pointed to the urgency of creating laws that cover the ruble-to-crypto conversion market, noting:
“Today, there are kiosks and exchange points where people bring rubles and receive crypto transfers. We think it’s the job of the government and the central bank to write laws quickly. These laws should legalise such activity and set clear rules so that no one uses it for money laundering or terrorism financing.”
His remarks reflect an explicit acknowledgement that unregulated crypto trading is thriving in Russia—outside the formal legal framework—and the CBR wants to bring it into law. The proposed aim: curb illicit flows and create a regulated channel for crypto-finance.
Why the Change? Money Laundering and Foreign Trade Motives
According to the Bank of Russia, two major motivations drive the regulatory push:
- Money laundering and illicit financing risk
Russia’s regulators see ruble-for-crypto platforms as a weak point in anti-money-laundering (AML) efforts and potential funnels for terrorism financing. Chistyukhin stressed that clear rules are needed so that such exchange points cannot be exploited. - Facilitating foreign trade and cross-border settlements
Russia’s war in Ukraine and the resulting sanctions have disrupted the nation’s access to Western payment systems such as SWIFT and correspondent banking channels. Crypto has emerged as a possible alternative for international payments. In that context, the Bank of Russia and the Ministry of Finance of the Russian Federation now believe that legalising crypto exchanges could support the use of cryptocurrencies in cross-border trade.
In a recent interview, Finance Minister Anton Siluanov said that his ministry and the central bank are in agreement that cryptocurrency use outside the current “experimental legal regime” (ELR) should be formally legalised. He argued that only by doing so can the sector be properly regulated and ordered.
The Experimental Legal Regime
Russia has already begun experimenting with limited cryptocurrency use. Under the ELR, select companies and “highly qualified” investors have been able to transact in cryptocurrencies for foreign trade. However, uptake has not met expectations. Chistyukhin acknowledged that cross-border crypto payments under the ELR “have not grown as much as wanted” for two principal reasons:
- Traditional financial instruments—such as correspondent bank accounts—remain more efficient.
- Without full legal regulation, crypto operations remain in a “gray zone,” which limits trust and broader deployment.
Further, under the ELR the eligibility is restrictive: only corporate entities or individuals meeting high thresholds (for example, large deposits or income) are permitted. Most ordinary Russians remain outside the legal framework for crypto use.
Regulatory Architecture
While the exact bill is still under discussion, several key elements of the proposed regulatory framework have emerged:
- Licensing of service providers: The CBR expects firms that handle crypto exchange to be formally registered, licensed and supervised.
- Strict AML/CFT oversight: Transactions will be monitored and subject to anti-money-laundering and counter-terrorism-financing rules. Prosecutors are already signalling harsher penalties for crypto operations outside the authorised framework.
- Separation of domestic retail payments and cross-border use: The legalisation appears initially to target cross-border crypto settlements more than domestic retail crypto use. Domestic payments in crypto (for goods and services) remain prohibited under existing law.
Domestic vs. International
It is important to discern that the regulatory shift is not opening the floodgates to unrestricted crypto use for all Russians. Some significant constraints remain:
- Crypto as payment local-market: Under current legislation, digital financial assets (DFAs) are not recognised as legal tender. They may be traded, pledged or exchanged, but not used to purchase goods or services.
- Retail access is limited: The ‘qualified investor’ model under the ELR limits participation—and domestic unrestricted retail crypto trading is not yet being broadly legalised. The CBR has explicitly signalled that all crypto operations “without legal authorisation should be deemed illegal and prosecuted.”
- Tight state control remains central: Even as legalisation is mooted, the goal is a state-monitored, licensed, and controlled crypto sector—not a laissez-faire environment. The CBR continues to emphasise the systemic risks posed by crypto assets.
Disclaimer: CryptopianNews shares this for learning and info only. It’s not meant to be financial or investment advice. Crypto markets change a lot and move quickly. Investing in them can be risky. You should always look into things yourself. Talk to a trained financial advisor before making any choices about investing.
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