Russia is planning new penalties for cryptocurrency transactions conducted outside official regulations. Officials say the move is needed to reduce fraud and protect users as crypto activity continues to grow.
The Central Bank of Russia announced the proposal during a financial cybersecurity forum. Governor Elvira Nabiullina said fraudsters are using the gray market and warned that stronger laws are necessary. She said introducing liability for illegal crypto transactions would help control risks.
Authorities said more than 1,800 Russians contacted law enforcement after their bank accounts were frozen. Many accounts were flagged due to suspicious cryptocurrency payments linked to possible fraud.
At the same time, some Russian officials want to expand legal crypto use. VTB Bank CEO Andrey Kostin said many businesses want cryptocurrency payment options, especially for international trade. The bank plans to offer crypto trading services once regulations are finalized.
Russia has been exploring crypto payments to help companies continue global transactions despite financial restrictions. Officials have already agreed to allow cryptocurrency use in foreign trade as part of broader economic changes.
Lawmakers are now preparing a full legal framework to regulate crypto trading, investing, and payments. The new rules could include licensing requirements and restrictions on unregulated platforms.
Analysts warn that Russia may also limit access to foreign crypto exchanges once domestic regulations are in place. The government is expected to approve the new crypto laws by summer.
The move shows Russia is trying to balance two goals — cracking down on illegal crypto activity while expanding legal cryptocurrency use to support its economy.
