Russia Weighs Launching Crypto Bank to Enhance Regulation and Support Mining Sector
A member of Russia’s Civic Chamber, Evgeny Masharov, has proposed the establishment of a crypto-enabled bank to address illicit crypto activities and provide essential infrastructure for cryptocurrency miners to convert earnings into cash. The proposal was detailed in an interview with the state-owned news agency TASS.
Addressing Illicit Transactions Through Institutional Oversight
Masharov emphasized that creating a crypto bank, modeled after Belarus’s approach, could bring currently unregulated ‘shadow transactions’ into the legal financial system. This integration is expected to increase transparency, curb fraud, and generate additional revenue for the federal budget. The bank would operate by ensuring all crypto settlements are conducted through regulated accounts held by Russian citizens.
Currently, many crypto exchanges in Russia function by crediting cash directly to users’ wallets and charging commissions, a system prone to misuse and illicit financing. A centralized crypto banking institution could close these loopholes and limit channels used for criminal financing and recruitment.
Support for Crypto Mining Amid Regulatory Challenges
Masharov also highlighted the potential benefits of such a bank for Russia’s crypto mining industry. Despite mining prohibitions in 10 of Russia’s 46 regions and seasonal restrictions in key areas to manage energy consumption, mining activities continue to thrive. However, miners lack formal channels to monetize their mined cryptocurrencies effectively.
Local mining firms, like Prostomining, report sustained operations despite regulatory constraints, with crypto mining increasingly featured in Russia’s Blockchain Forum discussions. A crypto bank could provide miners with necessary infrastructure to legally cash out their earnings, fostering industry growth within a regulated framework.
Regulatory Context and Industry Outlook
Since banning cryptocurrency payments in early 2022, Russia has cautiously re-engaged with the sector by allowing crypto-related financial products for accredited investors and exploring a Ruble-pegged stablecoin. These steps indicate a strategic approach to leverage crypto technology while managing associated risks.
The Russian crypto market continues to expand, with projected revenues increasing from $2.3 billion in 2025 to $3.9 billion by 2026. User adoption is also expected to grow significantly, reaching over 44 million individuals, roughly one-third of the nation’s population.
Conclusion
The proposal to establish a state-backed crypto bank represents a potential shift in Russia’s cryptocurrency policy, aiming to strengthen regulatory control, reduce fraud, and support the mining sector’s economic integration. However, the initiative’s implementation and impact remain to be seen amid evolving legal and geopolitical dynamics.
FinOracleAI — Market View
The proposal to create a crypto bank in Russia is likely to have a neutral short-term market impact. While it signals a more structured approach to crypto regulation and could benefit miners by providing clearer cash-out mechanisms, actual implementation faces regulatory and geopolitical uncertainties. Investors should monitor legislative developments and enforcement measures, as well as the government’s stance on crypto amid ongoing sanctions and economic pressures.
Impact: neutral
