Russia Eyes National Crypto Bank to Fight Fraud and Empower Miners

Russia may soon explore the creation of a national crypto bank to regulate digital transactions, combat fraud, and provide much-needed infrastructure for its growing mining industry. Evgeny Masharov, a member of the Russian Civic Chamber, said in an interview with state agency TASS that the country should follow Belarus’s lead in establishing a crypto service under a major financial institution.

Masharov argued that a crypto-enabled bank would address several pressing issues. It could help bring shadow transactions into the legal system, increase government revenue, and block channels used for financing criminal activities. He emphasized that regulated crypto settlements would add transparency, since all transfers would pass through citizens’ official bank accounts.

Although Russia banned payments via cryptocurrency in 2022, the government has since adopted a more flexible approach as it looks for alternatives to international sanctions. In May, banks were allowed to provide crypto-based products to accredited investors, and earlier this year, plans for a Ruble-pegged stablecoin were floated.

The proposal could also serve Russia’s large crypto mining industry, which faces major hurdles due to restrictions on operations in several regions. Despite the bans, the sector continues to expand, with local firms actively participating in events like the Blockchain Forum. A regulated crypto bank would give miners an official avenue to convert and cash out their earnings, something currently lacking in the Russian market.

Masharov previously suggested creating a government crypto fund using assets seized from criminal cases. His latest proposal reflects growing recognition of the economic potential of digital assets.

According to projections, Russia’s crypto industry revenue is set to hit $2.3 billion in 2025 and rise to $3.9 billion by 2026, with over 44 million users expected by then — nearly a third of the population.