Russia Considers Regulated Crypto Bank to Tackle Shadow Deals

Russia is exploring the creation of a state-backed cryptocurrency bank to bring transparency to digital transactions and support its growing crypto market. The proposal, floated by Evgeny Masharov of the Russian Civic Chamber, aims to legalize shadow transactions and provide miners with a secure avenue to convert earnings into fiat currency.

The move comes despite Russia's 2022 ban on crypto payments, signaling a shift toward regulated use for trade and investment. With the crypto industry projected to generate $3.9 billion in revenue by 2026 and attract over 44 million users, the government appears keen to harness its potential while curbing fraud.

Masharov highlighted the lack of legal infrastructure for miners, forcing transactions underground. A regulated bank could stabilize the sector, though regional mining restrictions remain in place to manage energy demands.