Russian Official Recommends National Crypto Bank To Tackle Fraud

Russia may establish a national crypto bank to regulate transactions, support miners, and curb fraud. Evgeny Masharov, a member of the Russian Civic Chamber, proposed an interview with the state news agency TASS.

Why Russia Wants a Crypto Bank

Masharov argued that a state-run institution could bring shadow crypto deals into the legal system. He also pointed out that the move would strengthen government revenues by imposing taxes on crypto activities.

Russia banned payments through cryptocurrencies in early 2022. Despite this, crypto use has grown as the country continues looking into ways to bypass Western sanctions and continue international trade.

Masharov believes that a national crypto bank could solve several pressing issues. 

He said such a move would channel large sums into the official economy and reduce reliance on unregulated platforms. He also pointed to Belarus, where lawmakers are moving forward with plans for a similar project.

Benefits for Russian Miners

Mining has been a controversial issue in Russia. Earlier this year, authorities banned mining in 10 regions for six years to ease pressure on the power grid. Seasonal restrictions also apply in areas where energy demand surges during winter.

Even with these limits, the industry continues to be strong. Local companies like Prostomining continue to expand, and mining-related businesses are visible at Russia’s Blockchain Forum.

Masharov stressed that miners lack the infrastructure to convert digital coins into rubles legally. 

A national crypto bank, he argued, would give miners a secure channel to sell their crypto holdings while meeting compliance rules.

Fighting Fraud Through Regulation

Fraud has become a serious problem in Russia’s financial sector. Criminals often use “droppers,” or money mules, to move funds from stolen bank accounts into crypto wallets. 

These funds are then laundered and spent on luxury goods or real estate.

Masharov said a state-run crypto bank could limit these practices. By requiring all transactions to pass through accounts held by Russian citizens, the system would tighten oversight. 

He explained that this would reduce the influence of illegal exchangers who currently dominate the market.

Belarus as a Model

Masharov cited Belarus as an example. President Alexander Lukashenko has been vocal about developing crypto-related industries, including a national crypto bank. 

Minsk has been drafting rules for such an institution, aiming to be the first in the former Soviet Union to launch it.

Russia’s proposal aligns with this trend. Like Belarus, Moscow seeks to balance control with innovation while also protecting its economy from sanctions.

So far, Russian companies have turned to crypto for cross-border payments due to exclusion from SWIFT and sanctions imposed by the US, EU, and UK. Many deals are conducted outside formal legal systems, which creates opportunities for fraud and exploitation.

Masharov argued that a national crypto bank would make international settlements safer. By routing payments through a controlled channel, Russia could reduce exposure to manipulation by hostile actors and ensure compliance with domestic rules.

Growth of Russia’s Crypto Market

Despite uncertainty in regulation, the Russian crypto market continues to grow. Industry revenue is projected to reach $2.3 billion before the end of the year and rise to $3.9 billion by the next year. 

User numbers are expected to surpass 44 million by then, almost one-third of the country’s population.

Such growth shows the need for a regulated structure. A national crypto bank could offer stability to the sector and prevent unchecked operations that put citizens at risk.