Russia's Central Bank to Permit Cryptocurrency Operations with Strict Regulations

According to PANews, the Central Bank of Russia (CBR) has announced plans to allow banks to engage in cryptocurrency activities, subject to stringent capital limits and reserve requirements. This was disclosed by Vladimir Chistyukhin, the First Deputy Governor of the CBR, during the Finopolis Forum. Chistyukhin stated that the bank maintains a conservative stance, questioning whether incorporating cryptocurrencies into balance sheets truly falls within the scope of banking operations. However, after discussions with the professional banking sector, it was acknowledged that bank participation in such activities might be meaningful. Chistyukhin also highlighted the CBR's intention to pass comprehensive legislation regulating cryptocurrency investments by next year. This legislation would enable authorities to implement a licensing mechanism, with the first licensed service providers expected to enter the market by the end of the year. His call for the swift approval of appropriate cryptocurrency legislation has received support from his superior, Elvira Nabiullina, the Governor of the Central Bank of Russia.