Russia Permits Banks to Engage in Bitcoin and Crypto Operations at a Limited Scale

A local media outlet recently reported that the Bank of Russia has made a major decision on how banks can work with Bitcoin and crypto. 

Specifically, the central bank will now let financial institutions take part in crypto transactions, but only under strict limits meant to keep the country’s financial system stable and secure.

Banks to Work with Bitcoin and Crypto at a Limited Scale

According to the report, banks will soon get government approval to handle cryptocurrencies, though they must follow firm capital and reserve requirements. 

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Speaking on the development, Vladimir Chistyukhin, First Deputy Chairman of the Bank of Russia, explained that these limits exist to make sure commercial banks don’t turn crypto trading into their main business. He said the central bank recognizes the growing role of crypto but still wants to move carefully to avoid unnecessary risks.

Chistyukhin said the apex discussed the issue with leaders in the banking sector and agreed that completely banning banks from dealing in crypto would make little sense. Instead, the new approach gives banks limited access while keeping a close watch on their activities. 

According to him, every transaction must remain transparent and comply with anti-money laundering rules, adding that both individuals and institutions must identify themselves and clearly show where their funds come from.

Russia Emphasizes on Money Laundering Risks

He also pointed out that both Russian and international experts now see crypto as carrying higher risks of money laundering and terrorist financing. As a result, the Bank of Russia will apply all existing anti-money laundering measures to crypto investments.

Notably, banks, brokers, and exchanges will have to monitor their clients and block any transactions that don’t meet legal standards. They will take full responsibility for reporting suspicious activity. 

Chistyukhin noted that Russians who own crypto can sell it locally through national infrastructure but may use foreign platforms for other types of transactions. Interestingly, he also confirmed that around 20 million Russians already use digital assets, which shows how widespread crypto has become in the country.

Russia Joins Global Trend Around Crypto Regulations 

The latest decision comes as part of a global wave of crypto regulation. Governments worldwide, from the U.S. under the Trump administration to the European Union with MiCA, are working to create clearer rules for the industry. 

Notably, Russia’s approach fits into this trend but focuses on protecting financial stability and maintaining control over its domestic market. Recent developments show how Russia is tightening its oversight while still looking to allow innovation. Last November, the government recognized crypto as property.

Also, new rules starting in January 2025 require companies to register foreign trade contracts involving digital rights, such as cryptocurrencies, with authorized banks. This rule covers imports worth over 3 million rubles and exports above 10 million rubles.

Meanwhile, these regulations have become necessary, considering the widespread use of crypto in Russia. Reuters reported that Russian oil companies are already using Bitcoin, Ethereum, and stablecoins like Tether to settle trade deals with China and India, helping them get around Western sanctions. 

Also, the Bank of Russia recently proposed a three-year experimental program for wealthy investors to trade cryptocurrencies under close supervision. However, the Digital Watch Observatory noted that some of the country’s new rules could effectively ban the use of U.S.-linked stablecoins such as Tether due to their potential sanction risks.