Russia’s Crypto Fines: Gray-Market Gamblers Beware!

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In a twist worthy of a Dahl tale, Russia has decided that those who dabble in the murky world of gray-market crypto will now face the wrath of the law-after their bank accounts mysteriously vanish.

Summary

  • The Central Bank, ever the vigilant guardian of financial order, has declared that those who play outside the rules will be held accountable. And by “accountable,” we mean fined, of course.
  • Over 1,800 brave souls have come knocking on the government’s door, begging to have their bank accounts unfrozen after they unwittingly stumbled into the crypto conundrum.
  • Officials, ever the optimists, are pushing for legalization while secretly plotting to turn the crypto world into a bureaucratic labyrinth of licenses and red tape.

Russia’s central bank has proposed new penalties for cryptocurrency operations conducted outside the country’s regulatory framework, according to statements reported by Russian state media on Wednesday. A delightful blend of chaos and control, if you ask me.

Central Bank of Russia

Central Bank of Russia Governor Elvira Nabiullina took to the stage at a cybersecurity forum and declared that the time has come to crack down on the crypto crooks. “Fraudsters are taking advantage of the gray market,” she warned, as if the rest of us hadn’t noticed.

“A systemic solution is, of course, regulating cryptocurrency with the introduction of liability for transactions outside the regulated segment,” she added, as if the rest of us hadn’t already guessed.

The central bank chief, ever the diligent bureaucrat, has already submitted her proposals to the government, and now they’re just busy discussing whether to take her seriously or not.

Nabiullina noted that Russians who sell cryptocurrency frequently face banking restrictions, with their accounts suspended when received funds are linked to fraudulent activities. More than 1,800 individuals contacted Russian law enforcement agencies in the past three months seeking restoration of banking services after being added to a state database for suspicious transactions, according to government newspaper Rossiyskaya Gazeta on Thursday. A delightful dance of bureaucracy and panic.

During the same conference in Yekaterinburg, VTB Bank CEO Andrey Kostin called for accelerated legalization of cryptocurrency transactions, particularly for payment purposes. The executive of Russia’s second-largest bank said a significant number of clients, including major exporters, are requesting cryptocurrency payment options, according to news portal Gazeta.ru. How quaint.

VTB, which is majority state-owned and subject to Western sanctions, announced plans last year to launch cryptocurrency trading through brokerage accounts once regulations are established. A noble goal, if you ignore the fact that the regulations are still in the “let’s see what sticks” phase.

Russia’s push toward cryptocurrency legalization has been driven primarily by the need for international settlement options. In October, the Ministry of Finance and the Central Bank agreed to legalize cryptocurrency payments in foreign trade, enabling Russian firms to circumvent financial restrictions imposed by Western nations over the conflict in Ukraine. A clever workaround, if you enjoy playing cat and mouse with global powers.

Moscow authorities aim to replace an experimental legal regime for such transactions with comprehensive legislation covering cryptocurrency activities, including investment and trading. The framework will be based on a regulatory concept proposed by the central bank in late December that would recognize cryptocurrencies and stablecoins as “monetary assets.” A fancy term for “we’re still figuring this out.”

Parliamentary Financial Markets Committee Chairman Anatoly Aksakov urged swift action on crypto market regulation at the Yekaterinburg forum, stating that the unregulated sector has resulted in significant financial losses. A dramatic way to say, “We’re all out of money.”

Russian authorities have indicated plans to approve the legislation by summer, according to reports. A summer of chaos, no doubt.

Industry analysts interviewed by business news outlet RBC this week suggested that Russian regulators may restrict access to foreign cryptocurrency exchanges such as Bybit and OKX once domestic regulations are implemented. Nikita Zuborev, senior analyst at crypto exchange aggregator Bestchange.ru, predicted such restrictions could occur after Russia begins licensing domestic cryptocurrency service providers, potentially by year-end. A delightful future, if you enjoy being locked out of your own crypto.

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2026-02-19 15:08