Moscow to license crypto exchanges if they establish a presence in Russia

Cryptocurrency exchanges will have to set up a subsidiary in Russia and abide by its laws to be allowed to work there, the country’s monetary authority has made that clear.

The statement comes amid fears that Russian authorities are planning to cut off access to global trading platforms for digital assets as soon as they regulate the domestic market this year.

Moscow to license crypto exchanges if they establish a presence in Russia

Foreign-based providers of crypto-related services will be permitted to operate in the Russian economy through locally registered subsidiaries, the Central Bank of Russia (CBR) has indicated.

The regulator’s stance, announced by the head of its Department for Strategic Development of Financial Markets, Ekaterina Lozgacheva, applies to cryptocurrency exchanges and similar platforms, the Interfax news agency reported Friday.

Towards the end of last year, which proved a turning point for Russia’s attitude towards decentralized digital currencies like Bitcoin, the monetary authority approved a new concept to form the basis for comprehensive regulation of the sector.

The policy document, an excerpt of which was published in late December, envisages recognizing cryptocurrencies and stablecoins as “monetary assets” and introducing rules to govern activities like investment and trading.

Under the upcoming legal framework, which must be adopted to implement the concept by July 1, “citizens will be required to conduct transactions within Russia through regulated intermediaries,” Lozgacheva stated during a financial cybersecurity forum.

Those who have already acquired cryptocurrency will be able to transfer it to accounts with such entities during a transitional period, she told reporters on the sidelines of the event, noting:

“If any foreign intermediaries are interested in operating in the Russian market … they can open their own structures and provide services within the framework of the Russian law.”

The central bank executive emphasized that regulators are taking the same approach as with intermediaries in the traditional financial market.

Similarly, the penalties for breaking the new crypto legislation will mirror those currently in place for illegal banking activities. And persons using the services of an unregulated intermediary will potentially face administrative liability. The latter will be introduced by July 1, 2027.

Under Russia’s Criminal Code, serious banking violations can result in fines of up to 300,000 rubles (nearly $4,000) or imprisonment of up to four years for individuals. Punishment is harsher for people acting as an organized group – up to 1 million-ruble fines and seven-year sentences.

Russia’s first legal crypto transactions expected by the end of 2026

At the “Cybersecurity in Finance” conference held by the CBR in Yekaterinburg, Lozgacheva also said that the first cryptocurrency transactions outside the gray zone may take place in Russia before the end of the year, after the respective law is passed.

Elaborating on the matter during the “Cryptocurrencies: Challenges and Opportunities” session, and quoted by the Prime news agency, she stated:

“We expect that soon, when the bill is submitted to the State Duma, we will have the opportunity to discuss many details. And with its adoption, we see that the first [crypto] transactions could begin by the end of the year.”

Last spring, the Bank of Russia introduced an “experimental legal regime” for operations with cryptocurrencies and authorized financial firms to offer their derivatives on the domestic market amid growing crypto turnover, already reaching 50 billion rubles a day.

It provided Russian companies with the opportunity to use Bitcoin and the like for cross-border payments, thus bypassing sanctions, and gave a small group of “highly qualified” investors a chance to add digital assets to their portfolios.

The temporary arrangement should be replaced by a permanent regulation, one of the pillars of which is expanding investor access to include even ordinary Russians, albeit under strict limitations.

Meanwhile, analysts expressed concerns earlier this week that Moscow may block traffic to popular crypto trading platforms once it starts issuing licenses to domestic exchanges.

Well-known global providers of such services are still widely used by Russians, despite restrictions imposed over their country’s invasion of Ukraine and major players like Binance pulling out.

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