- Russia’s crypto bank plan seeks to legalize shadow deals and boost state tax revenue.
- Masharov says stricter oversight will curb fraud and stop illicit crypto activities.
- The bank could help miners with legal cash-out options and support cross-border trade.
Russia is considering launching a national crypto bank to regulate the country’s gray market, reduce fraud, and increase state revenue. The proposal was presented by Yevgeny Masharov, a member of the Russian Civic Chamber. He stated Russia should follow Belarus’ path in creating a government-linked crypto exchange through a major financial institution.
Proposal to Bring Oversight
Masharov explained that the creation of a crypto-enabled bank could bring underground crypto dealings worth billions into the legal system. According to him, these funds often escape taxation and are used in illicit activities.
By centralizing oversight, the state could direct such transactions into monitored channels and boost federal budget income. He emphasized that current practices among private crypto exchangers allow cash deposits into citizens’ wallets with minimal oversight.
These operations, he noted, charge commissions but remain unregulated, leaving loopholes for criminal use. A state-run crypto bank would instead require settlements through official accounts of Russian citizens, ensuring a clear monitoring of funds.
The idea resembles Belarus’ ongoing efforts to regulate its crypto sector. Within its High-Tech Park, the country already hosts licensed exchanges and brokers under a structured framework. Masharov pointed to Belarus as an example where digital asset regulation helped decriminalize the sector and increase tax contributions.
Fraud and Money Laundering
Another issue raised by Masharov involves fraud prevention. He argued that criminals often rely on “droppers” to channel illicit funds into crypto wallets before spending them on luxury goods or property. With a national crypto bank in place, these activities could be minimized through stricter monitoring of transfers.
He further suggested that settlements within such a bank should be made in digital assets, but only through verified Russian citizen accounts. This system, he said, would close loopholes exploited by online fraud schemes and reduce risks associated with unregulated crypto use.
This proposal follows his earlier call in March for a government crypto fund built from confiscated assets tied to criminal cases. Such initiatives, Masharov argued, could establish a stronger regulatory environment while denying criminals unchecked access to digital assets.
Supporting Miners and International Trade
Masharov also pointed to benefits for Russia’s mining industry, which is active despite restrictions. Russia banned mining in 10 of its 46 regions for six years and introduced seasonal limits in other key areas to curb energy demand, on January 1, 2025.
However, local firms, such as Prostomining, represented by Vyacheslav Kopylov, report that mining operations continue to thrive. Currently, miners face a lack of infrastructure to sell their coins domestically, forcing many to rely on informal channels.
A crypto bank, Masharov said, could create a direct pathway for miners to exchange assets within Russia. This would provide miners with legal options to cash out while increasing transparency for regulators. Beyond mining, the proposal also carries implications for international trade.
Russia has turned to digital assets for cross-border transactions since its removal from the SWIFT system. However, most of these dealings happen outside regulatory frameworks, limiting oversight. A state-backed crypto bank could provide a more secure framework for companies conducting overseas payments.
Recent government measures also align with this gradual change. In May 2025, Russian financial institutions received approval to offer crypto-based products to accredited investors. In April, authorities floated the idea of a ruble-pegged stablecoin. These steps, combined with Masharov’s proposal, show an effort to establish a structured market for digital assets.
Related: Belarus Aims for Global Crypto Hub with New Regulatory Framework
Industry Growth Despite Uncertainty
Russia’s Blockchain Forum has seen rising participation from mining and exchange firms, reflecting sustained industry interest. Although the government has restrictions in certain areas, the push for a national crypto bank shows a possible change in how the country integrates digital assets into its economy.
Russia’s consideration of a national crypto bank shows its efforts to regulate digital assets, strengthen oversight, and address fiscal gaps. The plan, supported by Yevgeny Masharov, aims to legalize shadow transactions, protect against fraud, and create infrastructure for miners.
