The Bank of Russia is taking significant strides toward integrating cryptocurrency into its banking framework. In a noteworthy announcement, Central Bank of Russia (CBR) Governor Elvira Nabiullina has proposed a plan that could allow banks and brokerage firms to obtain licenses for operating crypto exchanges through a notification process based on their existing financial licenses.
During an annual gathering of lending institutions with the Central Bank on March 5, Nabiullina emphasized the importance of utilizing the banking sector’s existing infrastructure to combat money laundering and financing of terrorism, while also enhancing protection for clients in the digital assets market. This shift appears to suggest a conciliatory stance between regulators and cryptocurrency traders, addressing long-standing concerns within traditional finance about the crypto ecosystem.
“We hope that your extensive banking experience in AML/CFT [anti-money laundering and countering the financing of terrorism], as well as your experience in countering fraud, will help protect your clients in the crypto market once it is legalized,” Nabiullina stated.
With the proposed exchange permissions being notification-based, institutions would be able to add cryptocurrency services onto their current financial licenses, rather than navigating a separate approval process. Under the draft regulations, cryptocurrencies and stablecoins would be classified as “currency valuables.” While Russians would be permitted to own and trade these digital assets, their use as a form of domestic payment would remain restricted.
Nevertheless, caution remains a priority for Nabiullina. She outlined a temporary limit on the level of risk banks can assume in cryptocurrency investments.
“However, we would still like to limit the level of risk a bank takes in this area to one percent of capital. Let’s start by seeing how banks operate within the one percent cap, and then see whether we need to move forward,” she clarified.
According to the announcement, qualified investors would be allowed to acquire crypto assets without restrictions, whereas non-qualified investors would be limited to purchasing up to 300,000 rubles annually through a single intermediary. The proposed framework effectively positions banks as the primary regulated access points for digital asset trading in Russia.
A Flip in Strategy
Since 2020, Russia’s approach to digital assets has been one of ambivalence and cautious navigation. Acknowledging digital assets as property, the country simultaneously banned their use as a payment method. After considering a full-fledged ban in 2022, the Russian government opted to pursue a strategy of regulation rather than prohibition. By 2024-2025, the country allowed limited cross-border crypto use, legalized mining, and restricted market access to banks and “super qualified” investors, leaving retail and peer-to-peer exchanges in a regulatory limbo.
This latest proposal signifies a major shift from a historically adversarial stance toward cryptocurrencies to a framework centered on controlled acceptance. By allowing banks and brokers to act as cryptocurrency intermediaries, Russia is aiming to encourage onshore activity, facilitate tax collection, maintain capital controls, and mitigate the risks associated with unregulated foreign exchanges.
The central bank is intent on crafting a comprehensive legal framework by mid-2026, after which penalties for unlicensed cryptocurrency platforms and offshore entities failing to localize their operations in Russia are expected to be enforced.
As the landscape of cryptocurrency regulation continues to evolve, it seems that Russia is positioning itself to embrace the future of digital finance, albeit with a cautious and calculated approach.
