Russia’s Central Bank Allows Banks to Engage in Crypto Operations with Limits

TLDR

• The Bank of Russia sets a 1% crypto exposure cap for participating banks.
• Banks must meet high reserve thresholds to handle cryptocurrencies.
• Russia introduces a legal framework for crypto use in international settlements.
• The central bank pushes for comprehensive crypto regulation by 2026.

Russia is taking a controlled step toward integrating cryptocurrencies into its financial system. The Bank of Russia has announced that domestic banks will be allowed to engage in cryptocurrency operations, though under strict conditions and limits. This move marks a cautious shift in the country’s approach to digital assets, aligning with increasing pressure from the financial sector amid ongoing sanctions and ruble instability.

Limited Crypto Operations for Banks

The Bank of Russia has decided to permit domestic banks to participate in cryptocurrency operations, but the move will be heavily regulated. As part of this plan, banks will be subject to strict reserve caps, ensuring that digital assets do not become a dominant part of their business activities. The central bank has set a limit of 1% of a bank’s capital for cryptocurrency exposure, with high reserve thresholds required to manage risk.

First Deputy Chairman Vladimir Chistyukhin made the announcement at the Finopolis fintech forum, emphasizing the Bank of Russia’s conservative stance on decentralized cryptocurrencies, such as Bitcoin. While the central bank recognizes the growing demand for crypto-related services, it is committed to maintaining control over how these assets are integrated into the financial system.

Strict Oversight and Risk Management

The Bank of Russia’s approach to crypto integration includes several layers of oversight and regulation. Participating banks will face rigorous monitoring to ensure that they adhere to the new restrictions.

By capping cryptocurrency exposure at 1% of capital, the central bank seeks to avoid any potential disruptions to the broader banking system that could arise from unchecked crypto investments.

In addition to the capital limits, banks will be required to hold substantial reserves against any cryptocurrency holdings, a measure designed to mitigate systemic risks. Chistyukhin stated that this policy aims to allow banks to explore crypto operations without compromising financial stability. The central bank’s cautious approach reflects its continued concerns about the long-term risks associated with cryptocurrencies.

Context of Growing Demand for Crypto Transactions

This move by the Bank of Russia follows a wider shift in the country’s regulatory landscape regarding digital assets. In 2025, Russia introduced a legal framework that allowed qualified companies and wealthy individuals to use digital currencies for international transactions. This experimental regime has been seen as a response to ongoing Western sanctions and the instability of the ruble, which has prompted calls for alternative financial solutions.

Under the current framework, individuals must meet specific criteria, such as holding at least 100 million rubles in assets and earning a minimum annual income of 50 million rubles, to qualify for using cryptocurrencies for international settlements.

This legal framework has already enabled a small group of individuals and businesses to use digital currencies for cross-border transactions, signaling an increasing interest in digital assets despite Russia’s traditionally conservative stance on cryptocurrencies.

A Step Toward Comprehensive Legislation

Chistyukhin and the Governor of the Bank of Russia, Elvira Nabiullina, have both emphasized the need for comprehensive cryptocurrency legislation. They have urged lawmakers to pass a more detailed crypto bill by 2026, which would provide a clearer legal framework for the operation of crypto service providers in the country.

The proposed legislation would include provisions for licensing crypto service providers, as well as clarifying the legal status of cryptocurrency transactions in Russia. While the central bank’s current policy allows for limited crypto operations by banks, the forthcoming legal framework is expected to play a crucial role in determining the long-term integration of digital assets within the country’s financial infrastructure.

As Russia continues to navigate the complexities of crypto integration, the central bank’s cautious approach reflects its commitment to balancing innovation with risk management. The coming years will likely reveal how effectively these regulations can foster growth in the crypto sector while safeguarding financial stability.

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