Amid growing crypto activity, the Central Bank of Russia (CBR) announced that it will permit specific commercial banks to engage in crypto-related business. This indicates a shift in Russia’s policy towards digital assets, showing greater tolerance of blockchain finance, but with tight regulatory supervision.
According to a local crypto media outlet Bits, the CBR said that permission to provide crypto services will be provided only to a limited list of banks with defined criteria. Such banks must prove their ability to handle the operational, legal, and financial risks of digital assets.
The central bank also assured that operations related to crypto should continue to remain secondary to the main business operations of banks, in an effort to avoid undue exposure of risk to the overall financial system.
Controlled Access in Crypto Space
According to comments from central bank officials, this move looks to balance opening doors to innovation while ensuring macroeconomic stability. The activities allowed will most probably be limited to services like dealing in digital financial assets, crypto-linked investment products for sophisticated investors, or facilitating regulated custody and settlement. However, the bank does not aim to legalize unregulated retail access to cryptocurrencies nor enable speculative dealing in banks.
The CBR is in talks with other financial institutions to create a regulatory framework that comprises risk controls, capital adequacy requirements, and reporting requirements. The framework should be developed within the next few months and could entail a pilot project with a few major institutions, like Sberbank or VTB, which have started modest experimentation with blockchain technologies.
Crypto in Russia
The policy change follows amid growing crypto activity in Russia. As per earlier reports, Russian users accounted for tens of billions of dollars worth of crypto-based transactions every year. The central bank and government previously were opposed to any level of cryptocurrency adoption but are now seeking to find how to make digital assets a part of the financial system in an organized and nationally advantageous way.
Over the last few months, Russia has been adopting a crypto-friendly approach. The CBR has suggested a test run for certain investors to let them trade cryptocurrencies for three years as a test, in March 2025.
Though crypto continues to be prohibited as a means of payment in Russia, this recent step indicates that regulators are considering blockchain and digital assets more viable. It primarily facilitates means of financial innovation and diversification of investment amid foreign trade in the face of Western sanctions. Yet the central bank maintains that risks to investors, depositors, and financial markets must be entirely addressed before the extension of wider usage is on the table.
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