The Bank of Russia has proposed a new regulatory framework that would allow banks and brokerage firms to obtain licenses to operate cryptocurrency exchanges. The move would place traditional financial institutions at the center of Russia’s future regulated digital asset market.
The proposal was presented by Elvira Nabiullina during an annual meeting with credit organizations. According to the regulator, banks already possess strong compliance systems that could be used to supervise crypto-related activities.
“We hope that the vast experience of banks in AML/CFT and fraud prevention will help protect your clients in the crypto market,” Nabiullina said.
Notification-Based Crypto Licensing Model
Under the proposed framework, banks and brokerage companies would be able to obtain permission to run crypto exchanges through a notification-based procedure. Instead of applying for a completely separate crypto license, financial institutions could extend their existing licenses to include digital asset services.
This approach aims to accelerate the development of a regulated crypto market while leveraging the compliance infrastructure already present in the banking sector.
By allowing regulated institutions to enter the crypto space, the central bank hopes to create a more controlled environment for digital asset trading within Russia.
Financial Institutions at the Core of the Crypto Market
The initiative forms part of a broader digital asset regulatory strategy currently being developed by Russian authorities.
Under the proposal:
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Cryptocurrencies and stablecoins would be classified as “currency valuables.”
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Digital assets could be owned and traded, but their use as a domestic means of payment would remain restricted.
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Limited exceptions may apply for cross-border trade transactions.
The framework would also require that crypto transactions by Russian residents be conducted only through licensed intermediaries, such as banks and brokerage firms.
This model effectively places traditional financial institutions as the primary gateways for retail and institutional crypto trading in Russia.
Investor Protection Measures Planned
The central bank’s proposal also includes several measures designed to protect retail investors.
Key elements include:
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A mandatory knowledge test for unqualified investors before they can access crypto markets
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An annual purchase limit of 300,000 rubles for liquid cryptocurrencies through a single intermediary
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Additional compliance and reporting obligations for financial institutions
The regulator also plans to ban trading of privacy-focused cryptocurrencies, including Monero and Zcash, citing concerns related to transparency and financial monitoring.
Mixed Reactions from the Crypto Industry
The proposal has sparked debate within Russia’s cryptocurrency community.
Sergey Mendeleev criticized the plan, arguing that it appears designed to shift crypto exchange activity away from existing market operators and toward major banks.
He noted that the structure of crypto markets is fundamentally different from traditional financial markets.
Meanwhile, Dmitriy Machikhin, a crypto compliance provider, also expressed skepticism. According to Machikhin, many users are likely to continue trading through international exchanges rather than relying exclusively on domestic platforms.
He added that the decentralized nature of cryptocurrency means users will still have the option to choose between regulated domestic services and independent global exchanges.
Possible Penalties for Unregulated Crypto Trading
The central bank has indicated that penalties could be introduced for crypto transactions conducted outside the future regulatory framework.
Although the proposal is still under discussion, authorities have suggested that the full regulatory system could be implemented gradually, potentially reaching completion by 2027.
If adopted, the plan could create a new business opportunity for Russia’s banking and brokerage sectors, allowing them to act as intermediaries for regulated digital asset trading rather than competing with external crypto platforms.
Russia’s Crypto Regulation Still Under Development
Russia’s digital asset regulatory framework remains a work in progress, and the central bank’s proposal is still being debated by policymakers and industry participants.
However, the plan signals a clear direction: integrating cryptocurrency trading into the traditional financial system while maintaining strict oversight and investor protections.
If the proposal moves forward, banks and brokerage firms could become the primary gateway for regulated crypto trading in Russia, reshaping how digital assets are accessed within the country.
