Russia is considering the establishment of a crypto bank to strengthen the digital asset sector, support miners, and combat illicit financial activities.
Crypto Bank and Its Goals
According to Evgeny Masharov, a member of the Civic Chamber of Russia, the creation of a crypto bank would address existing challenges in the digital assets space while boosting the country’s economy. Taking inspiration from Belarus, Masharov proposed launching a crypto exchange service through a major financial institution, which could bring 'shadow transactions' into the legal framework, increasing federal revenue and reducing channels used for financing criminal activities.
Supporting Miners through Banking Infrastructure
Masharov noted that a crypto bank could provide much-needed infrastructure for miners, highlighting the lack of options for cashing out their earnings. Despite crypto payments being banned at the beginning of 2022, Russia is gradually opening up to the sector by allowing financial institutions to offer crypto products to accredited investors and exploring plans for a Ruble-pegged stablecoin.
Combating Fraud through Regulation
Masharov emphasized that a regulated crypto bank could help fight fraud by ensuring transparency in transactions. He suggested that settlements should be made in cryptocurrencies, and funds should be credited only through the accounts of Russian citizens. Currently, most crypto exchangers accept cash, which opens doors for abuse.
The proposal to establish a crypto bank in Russia could significantly alter the financial landscape by supporting digital assets and miners while aiding in the fight against fraud. The country's crypto market revenue is projected to grow to $3.9 billion by 2026.
