Russia is actively discussing the creation of a crypto bank that would help legalize its crypto economy and address issues faced by miners.
Proposal for a Crypto Bank
Evgeny Masharov, a member of the Russian Civic Chamber, has suggested the establishment of a crypto bank to legalize cryptocurrency transactions. He noted that such a bank would help bring 'shadow transactions' into the legal framework, increase federal tax revenues, and reduce fraud related to unregulated crypto activities.
Challenges for Crypto Miners
Despite regional restrictions, crypto mining in Russia remains one of the largest in the world. Currently, miners lack official infrastructure to convert their digital earnings into local currency, pushing them towards unregulated markets. Masharov emphasized that a state-backed crypto bank would provide a secure and legitimate way for miners to sell their mined assets, addressing many pressing challenges.
Global Trends and Significance
The establishment of a crypto bank in Russia could signify a shift in the government’s stance on digital assets. While cryptocurrency payments were banned in 2022, the government has gradually begun to allow limited use cases. Analysts suggest that a regulated crypto bank could integrate digital assets into Russia's financial system while allowing government oversight, especially given the projected revenue of nearly $4 billion for the Russian crypto industry by 2026.
The creation of a crypto bank may signal to other countries the need for flexible regulations in the crypto economy, allowing them to harness its economic potential.
