4 Minutes
A proposed crypto bank for Russia
A member of Russia’s Civic Chamber has proposed establishing a crypto-enabled bank to help bring the country’s cryptocurrency activity into a regulated framework, reduce fraud, and provide a legal on-ramp for miners to convert earnings. The proposal aims to centralize oversight through a major financial institution and improve anti-money laundering (AML) controls while offering infrastructure support to the domestic crypto mining sector.
Why a crypto bank?
Evgeny Masharov, who sits on the Civic Chamber that reviews draft legislation, told state news agency TASS that a dedicated crypto bank would address multiple challenges: bring shadow crypto transactions into the legal economy, generate tax revenue for the federal budget, and restrict channels used to finance criminal activity. The idea is to have a regulated intermediary that would process crypto settlements and require that funds be credited only via the current accounts of Russian citizens, strengthening KYC (know-your-customer) and AML oversight.
Evgeny Masharov, a member of the Russian Civic Chamber, has proposed that the country create a crypto bank. Source: Oprf.ru
Regulatory context and recent shifts
Russia banned crypto payments in early 2022 but has since signaled a more pragmatic stance as it explores ways to facilitate international trade and mitigate sanctions impacts. Authorities have allowed financial institutions to offer crypto-based products to accredited investors and floated the idea of a Ruble-pegged stablecoin. A state-backed crypto bank could be another step toward channeling cryptocurrency flows through regulated, government-friendly gateways.
How a crypto bank could support miners
One practical motivation for the proposal is to support Russia's sizeable mining industry. Masharov noted that miners currently lack formal infrastructure to sell mined coins directly into regulated financial systems. A state-linked crypto bank could provide miners with compliant fiat off-ramps, reduce their reliance on unregulated exchanges, and ensure proper tax and reporting treatment.
Despite regulatory headwinds — including a six-year ban on mining in 10 out of 46 regions that took effect on Jan. 1 and seasonal energy-based restrictions in key mining areas — local mining businesses report continued activity. Industry representatives and Russia’s Blockchain Forum indicate the sector remains active, and a financial institution tailored to crypto would help legitimize miners’ operations and cash-out processes.
Combatting fraud and illicit flows
Masharov argues that centralizing crypto settlements in a regulated bank would make it harder for bad actors to exploit anonymous off-ramps. Today, many crypto exchangers accept cash into user wallets and charge commissions, which can obfuscate origin and destination of funds. A bank-based model would require settlements through verified accounts and provide clearer audit trails for law enforcement and regulators.
Broader industry outlook
The Russian crypto market continues to expand despite uncertainty over regulations. Market forecasts project total revenue to reach $2.3 billion in 2025 and rise to $3.9 billion by 2026, with crypto user numbers potentially exceeding 44 million by the end of 2026. A state-supported crypto bank or exchange could play a material role in shaping how that growth is captured, taxed, and supervised.
Other state measures
Earlier this year, Masharov suggested creating a government crypto fund populated with assets confiscated in criminal proceedings. Combined with a dedicated crypto bank, such measures reflect a broader push to bring cryptocurrency into state-managed channels while attempting to limit illegal financing and enhance fiscal receipts.
For international observers and blockchain stakeholders, the proposal highlights Russia’s ongoing balancing act: opening regulated pathways for crypto innovation and mining infrastructure while retaining firm controls intended to mitigate fraud, sanctions risks, and criminal misuse.
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