Russian banks prep crypto trading as Duma advances fraud bill
Russia's lower house is poised to pass legislation that cracks down on domestic crypto fraud while formally legalising digital asset cross-border settlements, paving the way for major banks to launch trading desks.
The State Duma is expected to pass a bill in its second and third readings this week targeting the illegal use of cryptocurrencies. According to Anatoly Aksakov, chairman of the State Duma Committee on Financial Markets, the legislation focuses on combating domestic fraud. Simultaneously, the framework will establish a legal pathway for using digital assets in international transactions.
The regulatory shift is already prompting action from the country's largest financial institutions. Top Russian banks are preparing to launch crypto trading services once the new rules take effect. To access these newly regulated markets, retail investors will face strict guardrails, including mandatory testing and purchase limits designed to mitigate risk.
This formalisation of cross-border crypto settlements provides critical infrastructure for Moscow's efforts to navigate Western financial restrictions. The US and European governments have severely restricted Russian access to traditional global finance since 2014, escalating these penalties significantly after the 2022 invasion of Ukraine. A 2023 legislative measure already legalised digital currencies for international payments, but the impending rules offer clearer operational guidelines for financial institutions.
While opening doors for foreign trade, the government maintains a strict prohibition on domestic crypto payments, a ban enacted in 2022. The state is also tightly controlling the supply side of the market. A law signed last year permits mining only for approved legal entities, explicitly barring foreign operations from participating in the Russian sector.
The legislative push reflects a pragmatic stance at the highest levels of government regarding digital assets. President Vladimir Putin has previously noted Russia's "certain competitive advantages" in mining due to its energy surplus and cold climate.
Highlighting the shifting global payments landscape at a Moscow forum in December 2024, Putin framed digital assets as an unstoppable force. "For example, Bitcoin, who can ban it? Nobody. And who can prohibit the use of other electronic payment instruments? Nobody, because these are new technologies," he said.
