Russia Considers Simplified Licensing Path For Bank-Run Crypto Exchanges

"We have proposed allowing banks and brokers to obtain crypto exchange licenses through a notification process and to act as intermediaries based on their current banking licenses. The sector's existing compliance frameworks could help protect customers entering the crypto market."

"The central bank framed the proposal as an effort to integrate cryptocurrency activity into Russia's existing financial infrastructure. Banks already maintain compliance systems designed to meet anti-money laundering and countering the financing of terrorism requirements, which could provide a foundation for supervising digital asset markets."

"Under the proposal, banks' exposure to cryptocurrency activities would be capped at 1% of their capital. The central bank outlined limits designed to manage financial risk during the early stages of integration."

Russia's central bank is developing a regulatory framework enabling banks and brokerage firms to operate cryptocurrency exchanges through a streamlined notification process rather than obtaining separate licenses. Financial institutions with existing banking or brokerage permits could expand into digital asset services using their current regulatory status. The central bank argues that banks' existing compliance systems for anti-money laundering and terrorism financing requirements provide adequate foundations for supervising crypto markets. To manage financial risk during initial integration, banks' cryptocurrency exposure would be capped at 1% of their capital. This proposal represents part of Russia's broader effort to establish comprehensive cryptocurrency regulations, with lawmakers previously targeting mid-2024 for finalizing a parliamentary draft.

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