Russia Plans National Crypto Bank to Seize Billions in Hidden Transactions and Crush Online Fraud: Could This Be the End of Unregulated Crypto in Russia?

Russia Proposes National Crypto Bank to Boost Treasury Income and Curb Fraud

A high-ranking Russian policymaker has put forward plans for a state-run “national crypto bank” aimed at centralising the country’s digital asset market, increasing federal revenue, and clamping down on crypto-related crime.

The proposal comes from Yevgeny Masharov, a member of the Public Chamber of the Russian Federation, who told TASS,

“A Russian crypto bank would solve several existing problems. It would bring hundreds of billions of rubles worth of [crypto] transactions out of the shadows.”

Centralising Crypto Activity for Greater Control

The envisioned bank would serve as the main legal channel for all cryptocurrency transactions in Russia, effectively acting as a single gateway for buying, selling, and trading digital assets.

By routing activity through one institution, regulators would gain full oversight of transactions, enforce anti-money laundering checks, and collect taxes directly on profits and trades.

Masharov stressed that the move would allow the government to monitor the flow of funds, helping to prevent tax evasion and combat fraud.

The proposal also points to potential benefits for Russian miners, who currently lack domestic infrastructure to sell their coins.

Masharov noted,

“We still have no infrastructure that lets miners sell their coins in Russia.”

He suggested that a state-controlled platform could offer a secure marketplace.

Yevgeny Masharov is a member of the Public Chamber of the Russian Federation and a prominent policymaker on financial issues, particularly concerning cryptocurrency.

Fraud Crackdown and Economic Motivation

Russia has seen a rise in crypto-related scams, often involving “droppers” who transfer illicit funds through crypto wallets before converting them into luxury goods or real estate.

Masharov argued that confining digital asset activity to a government-regulated bank could strike “a blow against online fraud,” providing a safer environment for ordinary users.

Beyond fraud prevention, the plan is also driven by financial considerations.

With sanctions limiting Russia’s access to international banking systems like SWIFT, crypto offers a potential avenue for cross-border trade.

A national crypto bank could facilitate these transactions while ensuring they remain visible to Russian authorities, generating new revenue for the federal treasury without increasing taxes on traditional sectors.

Lessons from Neighbouring States

Masharov highlighted Belarus as a nearby example.

Minsk is reportedly developing a regulatory framework for a national crypto bank, which would be “the first of its kind on the territory of the former Soviet Union.”

Belarusian President Alexander Lukashenko has repeatedly pushed for crypto-related industries, and Russia’s proposal appears to take cues from this regional experiment, particularly in formalising oversight and integrating taxation.

A History of Mixed Signals on Crypto

Russia’s relationship with digital assets has been inconsistent.

In early 2022, the Bank of Russia sought a complete ban on cryptocurrency mining and trading, citing threats to monetary stability.

Meanwhile, the Ministry of Finance advocated regulation rather than prohibition, leaving the sector in limbo.

The national crypto bank proposal reflects a shift toward controlled adoption, recognising crypto as too widespread to ignore while seeking to capture its economic benefits.

Source: Pexels

How Russia’s Approach Compares Globally

The Russian model is unusually centralised compared with other nations.

China has opted for an outright ban, while the United States regulates crypto across multiple agencies, leaving trading largely in private hands.

Iran allows licensed mining for export but restricts domestic usage.

Russia’s plan aims to combine trading, brokerage, and taxation under one state-controlled entity, creating a tightly managed system that challenges the usual decentralised nature of cryptocurrencies.

Technical and Social Hurdles Ahead

Implementing such a system will require massive investment in secure and scalable infrastructure.

Public adoption could be slow, as many crypto users value privacy and decentralisation.

There is also the risk that illicit activity will continue off-platform.

International scrutiny is another concern; if the bank is used to skirt sanctions, Western authorities may respond with targeted measures.

Source: Pexels

Legally, new regulations would be required to force all crypto activity through the bank and criminalise off-platform trading.

Will Russia’s Centralised Crypto Model Survive the Market?

Coinlive sees Russia’s proposal as an ambitious attempt to impose order on a sector built on decentralisation.

Centralisation may bring oversight and revenue, but it risks alienating the very users who drive crypto adoption.

The success of this bank hinges on public trust, technical reliability, and international response.

Without these, the project could become a state-controlled silo, struggling to integrate with global markets while leaving room for continued off-platform activity.

Russia may gain visibility and fiscal control, but the challenge of balancing regulation with market freedom will define whether this initiative can truly reshape the country’s crypto landscape.