Russia Embraces Crypto Adoption as Central Bank Allows Banking Sector Entry with Strict Regulations

Russia is accelerating cryptocurrency integration into its financial infrastructure as government officials recognize massive adoption rates while the central bank prepares to permit banking institutions to handle digital assets under stringent controls. Deputy Finance Minister Ivan Chebeskov revealed approximately 20 million Russians currently utilize cryptocurrencies for various purposes, emphasizing that digital assets represent an economic reality requiring government accommodation rather than resistance. Official statistics from Bank of Russia indicate Russian citizens held cryptocurrency exchange balances totaling 827 billion rubles ($10.15 billion) by March 2025, marking a 27% annual increase. Portfolio allocations showed Bitcoin (BTC) dominating at 62.1%, followed by Ethereum (ETH) at 22%, with stablecoins USDT and USDC comprising 15.9%. Simultaneously, First Deputy Governor Vladimir Chistyukhin confirmed the central bank's decision to authorize banks' crypto operations following industry consultations, though with strict capital limitations and reserve requirements preventing crypto from becoming dominant business lines. The regulator previously proposed restricting cryptocurrency transactions to qualified investors possessing minimum 100 million ruble portfolios or 50 million ruble annual incomes, while recommending temporary 1% capital exposure limits during risk assessment framework development.