Russia's central bank on Wednesday signaled plans to introduce penalties for cryptocurrency transactions conducted outside the country's regulatory framework, citing rampant fraud in the gray market. Governor Elvira Nabiullina told a financial cybersecurity forum that fraudsters are exploiting unregulated channels, and a systemic fix lies in imposing liability for crypto deals outside the regulated segment.
Bank Freeze Wave: 1,800+ Affected
Nabiullina noted that many Russians selling crypto face sudden banking restrictions—accounts get suspended when incoming funds are tied to scams. Government daily Rossiyskaya Gazeta reported Thursday that over 1,800 individuals contacted law enforcement in the past three months seeking restoration of banking services after being placed on a state database for suspicious transactions.
VTB CEO Pushes Accelerated Legalization
At the same forum in Yekaterinburg, VTB Bank CEO Andrey Kostin called for faster legalization of crypto transactions, especially for payments. According to news portal Gazeta.ru, Kostin said a significant number of clients, including major exporters, are demanding crypto payment options. VTB, a state-owned bank under Western sanctions, announced plans last year to launch crypto trading via brokerage accounts once regulation is in place.
Legislative Timeline and Exchange Restrictions
Russia's push toward crypto legalization is driven by the need for cross-border settlement alternatives. In October, the Ministry of Finance and the central bank agreed to legalize crypto payments in foreign trade, helping Russian firms bypass financial restrictions imposed over the Ukraine conflict. Moscow aims to replace the current experimental regime with comprehensive legislation covering investment and trading, based on a central bank concept that recognizes cryptocurrencies and stablecoins as monetary assets.
Parliamentary Financial Markets Committee Chairman Anatoly Aksakov urged swift action, stating the unregulated sector has caused major financial losses. Authorities plan to approve the legislation by summer, according to reports.
Industry analysts predict that once domestic regulations are implemented, Russia may restrict access to foreign exchanges like Bybit and OKX. Nikita Zuborev, senior analyst at crypto exchange aggregator Bestchange.ru, expects such restrictions after Russia begins licensing domestic crypto service providers, possibly by year-end.