TLDR
- Russia is considering the creation of a crypto-enabled bank to regulate digital transactions.
- The proposed crypto bank would help miners convert earnings legally and support a growing crypto market.
- Evgeny Masharov said the bank would fight fraud by bringing shadow transactions under government oversight.
- Russia banned crypto payments in 2022 but is now open to regulated crypto use for trade and investment.
- The crypto industry in Russia is projected to reach $3.9 billion in revenue by 2026 with over 44 million users.
Russia may create a crypto-enabled bank to regulate digital transactions and support miners with limited cash-out options. Evgeny Masharov, a member of the Russian Civic Chamber, suggested this to state-owned agency TASS on Tuesday. The proposal aims to legalize shadow transactions, fight fraud, and help stabilize the country’s crypto infrastructure.
Russia Lacks Legal Options for Crypto Miners
Masharov said Russia lacks any system to help miners legally convert their crypto earnings into fiat currency. He noted that the absence of infrastructure drives crypto transactions underground, raising regulatory and financial concerns. He suggested a state-backed bank could offer miners secure and lawful transaction services.
Russia currently restricts mining in 10 out of its 46 regions to reduce energy stress during peak periods. The ban, which started in January, will remain in place for six years and includes seasonal limits in key areas. Despite this, firms such as Prostomining claim that the crypto mining industry continues to thrive.
Crypto businesses remain active at events like Russia’s Blockchain Forum, which highlights continued interest in mining operations. With no formal banking outlet, miners still rely on unregulated platforms to cash out earnings. A licensed crypto bank could change that by offering a safe, government-monitored outlet for transactions.
Masharov emphasized, “Settlements in the said bank must be made in cryptocurrencies and funds must be credited through Russian citizens’ accounts.” He also criticized current exchangers, noting, “The main business of crypto exchangers is that cash is credited to wallets and a commission is charged.”
Russia Eyes Regulated Infrastructure to Curb Fraud
Russia banned crypto payments in 2022 but has shifted its stance, opening to crypto as a way to bypass sanctions. The government approved crypto-based products for accredited investors and is considering a Ruble-pegged stablecoin. A crypto bank would expand this shift by creating formal channels for crypto use.
Masharov said a licensed bank could also reduce criminal activity tied to unregulated exchanges. He proposed that the institution would oversee all digital asset flows to ensure transparency and reduce fraud. “It would block one of the channels for financing and recruiting our citizens to commit serious crimes,” he said.
In March, he also suggested a government crypto fund using assets confiscated from criminal cases. That proposal supports the broader effort to legalize crypto activities under strict government control. Russia could, therefore, transform crypto into a tool for economic support and national security.
Crypto Adoption Rises Across Russian Population
Russia’s crypto industry is growing despite regulatory uncertainty and recent mining restrictions. Market research shows projected crypto revenues will reach $2.3 billion by 2025 and $3.9 billion in 2026. The number of crypto users in Russia is expected to exceed 44 million by the end of 2026.
Russia’s population is approximately 143 million, indicating strong adoption across various demographics. This growth further supports the need for a regulated banking system tailored to digital asset holders and miners. A crypto bank would serve this expanding market while ensuring lawful compliance.
