The Bank of Russia’s New Approach to Cryptocurrency
The Bank of Russia, under the leadership of First Deputy Chairman Vladimir Chistyukhin, is set to permit a select number of commercial banks to navigate the cryptocurrency landscape, albeit with stringent oversight. This move, reported on October 10, reflects a crucial shift from outright prohibition to a more measured approach following extensive consultations with the banking sector.
Capital Restrictions and Transparency Protocols
Chistyukhin took a cautious stance, asserting the necessity of implementing capital restrictions and transparency protocols to mitigate potential systemic risks associated with digital assets. He noted that the previous decision to completely exclude banks from crypto dealings was deemed unwarranted following in-depth discussions with financial professionals.
This new framework, designed to maintain stability within the financial system, sets forth specific limitations on capital and imposes significant reserve requirements. Consequently, banks will be unable to heavily incorporate digital currencies into their primary operations, preventing excessive exposure.
Anti-Money Laundering and Counter-Terrorism Financing Measures
Moreover, all measures relating to anti-money laundering (AML) and counter-terrorism financing (CTF) will be diligently enforced, placing the responsibility on banks and exchanges to monitor client identities and transactions, as well as to block any illicit activities.
Experimental Legal Structure for Cryptocurrency Transactions
This current policy builds upon a recently introduced experimental legal structure allowing a carefully chosen group of affluent individuals and corporations to engage in cryptocurrency transactions for international payments; a program launched in 2025 that requires participants to have at least 100 million rubles in assets and an annual income exceeding 50 million rubles. This initiative is intended to test the effectiveness of “digital settlement”, suggesting a transition in Russia’s stance towards cryptocurrencies.
Pressure from the Financial Community
The urgency to adapt to these changes has been amplified by the continuous pressure from Russia’s financial community advocating for reduced restrictions due to the lengthy effects of Western sanctions and the volatility of the ruble. Chistyukhin and Governor Elvira Nabiullina are pushing for a comprehensive regulatory framework by 2026, which aims to establish a licensing procedure for exchanges while clarifying what constitutes a crypto service provider.
The Emergence of the A7A5 Stablecoin
In this backdrop of evolving regulatory policies, the emergence of the A7A5 stablecoin—a digital currency pegged to the ruble—has garnered significant attention, rapidly achieving a market capitalization of $500 million. Despite the fact that its issuers, including the sanctioned PSB bank, are under international scrutiny, the stablecoin has emerged as a noteworthy mechanism for sanctioned Russian entities to facilitate international trade.
Oleg Ogienko from A7A5 has defended the currency, asserting its compliance with Kyrgyz legal frameworks and insisting it is not involved in illicit activities. He highlighted the growing adoption of A7A5 across Asia, Africa, and Latin America, noting its role in supporting billions of dollars in trade for Russian businesses and their partners.
This surge in the stablecoin’s prominence raises significant concerns about its potential use for bypassing existing financial restrictions.
