Russian Crypto Ban Debate Heats Up Again

Russian Central Bank Governor Elvira Nabiullina has once again pushed for a nationwide ban on cryptocurrency transactions, aiming to prevent traders from buying and selling digital assets within Russia.

Speaking at a press conference, Nabiullina emphasized her intent to prohibit crypto-based settlements between residents, except within the Central Bank’s Experimental Legal Regime (ELR).

The ELR serves as a controlled regulatory sandbox, allowing select Russian firms to use crypto for payments and enabling miners to sell their holdings to international buyers.

While recent discussions suggest the bank may permit “qualified investors” to trade within this framework, Nabiullina remains steadfast in her crypto scepticism.

A long-time advocate for strict regulations, she previously championed a blanket ban on crypto exchanges, trading, and mining, even drafting legislation to enforce such measures.

However, international sanctions have forced a shift in strategy, with many Russian businesses now relying on Bitcoin (BTC) and Ethereum (ETH) for cross-border transactions.

Despite these economic pressures, Nabiullina remains committed to restricting public access to cryptocurrencies, reinforcing her stance that private digital assets should have no place in the Russian economy.

Anyone Caught Violating Crypto Ban Should Be Criminally Liable

Nabiullina urged Moscow to enforce criminal liability for those violating a potential crypto ban but also acknowledged the need for regulatory progress.

She expressed:

“We maintain our old position that cryptocurrencies should not be allowed as a means of payment. So we propose introducing a ban on settlements in cryptocurrencies between residents [of Russia] outside the ELR. We don’t only propose introducing a ban, but also establishing liability for violating the ban.”

She emphasized the importance of establishing a structured framework that would allow "particularly qualified" investors to participate in the Russian crypto market.

Recent discussions suggest that the ELR could collaborate with the Moscow Exchange to introduce crypto trading products tailored for these high-level investors.

This shift indicates a possible softening of the Central Bank’s stance, balancing strict regulation with controlled market participation.

Crypto Trading Restricted to ‘Super-Qualified Investors’

In early March, the Ministry of Finance proposed creating a new category of “super-qualified” investors permitted to trade cryptocurrencies.

However, the Central Bank remains firm in its stance on limiting retail investor access.

First Deputy Chairman Vladimir Chistyukhin reinforced this position, emphasizing the “extreme risks” associated with crypto transactions.

The bank continues to advocate for stringent measures to shield the general public from potential financial exposure while maintaining tighter control over the market.

Backlash & Disagreement from Industry Leaders

In Moscow, opposition to Nabiullina’s anti-crypto stance is growing.

According to the state-run media agency TASS, Alexander Shokhin, head of the Russian Union of Industrialists and Entrepreneurs, has urged the government to evaluate the potential of cryptocurrency adoption.

His call comes in response to US President Donald Trump’s decision to establish a strategic Bitcoin reserve, a move that could reshape global financial dynamics.

Shokhin said:

“It seems that it has been agreed [in Moscow] that crypto can be used in cross-border settlements. After Trump said that the US will now become the crypto capital of the world and started accumulating crypto reserves – at least in Ethereum and Bitcoin – we also need to look at this somehow.”