Russian Policymaker Proposes National Crypto Bank to Boost Treasury, Combat Fraud

Yevgeny Masharov, a member of Russia's Public Chamber, has proposed the creation of a national crypto bank to bring cryptocurrency transactions into the legal sector, boost federal budget revenues, and combat fraud, including credit card and crypto-related crimes. The bank would provide a regulated platform for crypto miners and businesses, facilitating secure cross-border payments amid ongoing sanctions and economic challenges. Masharov emphasized that formalizing crypto transactions could generate hundreds of billions of rubles for the Russian economy by taxing previously shadowed activities and reducing money laundering risks. The proposal aligns with Russia's broader efforts to establish state-run crypto exchanges and eliminate quasi-legal exchanges nationwide, following similar initiatives in Belarus, where a regulatory framework for a crypto bank is also being developed. This move aims to enhance transparency, secure international trade, and curb illicit financial activities such as those involving 'droppers' who launder money via crypto. The initiative reflects Russia's strategic adaptation to the evolving crypto landscape as it navigates sanctions and disconnection from global financial messaging systems.