Russian Bankers Urge Softer Crypto Rules, More Coins

The Association of Russian Banks (ARB) has submitted proposals to soften pending cryptocurrency legislation and expand the range of digital assets permitted for trading in Russia, according to reports by RBC and Bits.media. The advocacy comes after lawmakers also criticized the draft “On Digital Currency and Digital Rights” bill as overly restrictive, warning it could monopolize the market and drive investors to foreign platforms or unregulated channels.

ARB’s Liberalization Proposals

The ARB has forwarded its recommendations to Anatoly Aksakov, Chairman of the Financial Markets Committee at the Russian State Duma, seeking to “liberalize” the pending legislation that is under review as part of a comprehensive regulatory package for crypto operations.

Under the current draft law, the ARB seeks to allow:

• Transfers to non-custodial wallets abroad and whitelisting of foreign crypto platforms, which are prohibited under the existing version that permits only transfers to custodial wallets and via licensed domestic intermediaries
• Exchange of cryptocurrencies for Russian digital financial assets, such as tokenized securities, which banks authorized to work with decentralized money would conduct
• Regulation of stablecoins pegged to fiat currencies or backed by other assets, which are not currently mentioned in the legislation
• Relaxed standards for approved cryptocurrencies, as the bill currently admits only the largest coins by capitalization and liquidity—Bitcoin, Ethereum, and Solana—to the Russian market
• Exemption from disclosure requirements for digital depositories regarding client information and crypto holdings
• Judicial protection for crypto assets, including those not disclosed to Russia’s tax authority

Parliamentary Committee Concerns

The parliamentary Committee for Protection of Competition recently reviewed the draft law and expressed concern about its “excessive rigidity,” according to the committee’s conclusion. Lawmakers warned that the strict framework could trigger market monopolization and deter retail participation.

In their official remarks, the committee stated: “Excessively stringent regulation compared to global regulatory practices may not achieve the bill’s goals.” They elaborated that the framework could “trigger an outflow of retail investors, who will be forced to choose between foreign platforms with more lenient regulations or remain in the gray zone of the domestic market, unwilling to use monopolists’ services under unfavorable terms.”

The committee specifically criticized:

• Strict licensing requirements for crypto companies regarding capital, cybersecurity, and corporate transparency, which would exclude small and medium-sized participants and leave only large players like banks and financial institutions with full market access
• Monopolization risks, as only large financial institutions would gain full access to cryptocurrency transactions under the proposed rules
• Innovation concerns, warning that centralization “often leads to the disappearance of innovative startups and creates the risk of high fees” and “reduced quality of services and a lack of incentives for the development of new technological solutions”

The committee emphasized it supports the bill’s stated goals—bringing the sector out of the shadows, introducing transaction processing requirements, increasing market transparency, and developing service standards and investor protection—but expressed serious reservations about the regulatory approach.

Legislative Timeline

The draft law was filed in the State Duma earlier in April and amendments can be made until the second reading. According to the legislation, the “Digital Currency” bill must be adopted by July 1, 2026, with enforcement of fines and penalties to follow one year later.