Russia plans liability for gray-market crypto after fraud-linked bank freezes.
Summary
- Central bank wants liability for crypto deals outside regulated segment, citing rising fraud complaints.
- Over 1,800 Russians sought help after bank account freezes tied to suspicious crypto inflows.
- Officials push legalization for cross-border crypto payments while preparing broader licensing regime.
Russia’s central bank has proposed new penalties for cryptocurrency operations conducted outside the country’s regulatory framework, according to statements reported by Russian state media on Wednesday.
Central Bank of Russia
Central Bank of Russia Governor Elvira Nabiullina said during a financial cybersecurity forum that prosecution of unregulated cryptocurrency transactions is necessary to address fraud concerns.
“Fraudsters are taking advantage of the gray market,” Nabiullina stated, according to the official TASS news agency. “A systemic solution is, of course, regulating cryptocurrency with the introduction of liability for transactions outside the regulated segment.”
The central bank chief added that the institution has submitted proposals to the government and is currently in discussions regarding the changes.
Nabiullina noted that Russians who sell cryptocurrency frequently face banking restrictions, with their accounts suspended when received funds are linked to fraudulent activities. More than 1,800 individuals contacted Russian law enforcement agencies in the past three months seeking restoration of banking services after being added to a state database for suspicious transactions, according to government newspaper Rossiyskaya Gazeta on Thursday.
During the same conference in Yekaterinburg, VTB Bank CEO Andrey Kostin called for accelerated legalization of cryptocurrency transactions, particularly for payment purposes. The executive of Russia’s second-largest bank said a significant number of clients, including major exporters, are requesting cryptocurrency payment options, according to news portal Gazeta.ru.
VTB, which is majority state-owned and subject to Western sanctions, announced plans last year to launch cryptocurrency trading through brokerage accounts once regulations are established.
Russia’s push toward cryptocurrency legalization has been driven primarily by the need for international settlement options. In October, the Ministry of Finance and the Central Bank agreed to legalize cryptocurrency payments in foreign trade, enabling Russian firms to circumvent financial restrictions imposed by Western nations over the conflict in Ukraine.
Moscow authorities aim to replace an experimental legal regime for such transactions with comprehensive legislation covering cryptocurrency activities, including investment and trading. The framework will be based on a regulatory concept proposed by the central bank in late December that would recognize cryptocurrencies and stablecoins as “monetary assets.”
Parliamentary Financial Markets Committee Chairman Anatoly Aksakov urged swift action on crypto market regulation at the Yekaterinburg forum, stating that the unregulated sector has resulted in significant financial losses.
Russian authorities have indicated plans to approve the legislation by summer, according to reports.
Industry analysts interviewed by business news outlet RBC this week suggested that Russian regulators may restrict access to foreign cryptocurrency exchanges such as Bybit and OKX once domestic regulations are implemented. Nikita Zuborev, senior analyst at crypto exchange aggregator Bestchange.ru, predicted such restrictions could occur after Russia begins licensing domestic cryptocurrency service providers, potentially by year-end.