Russia Cracks Down on Crypto Ownership with New Disclosure Rules

Russia is tightening its grip on cryptocurrency ownership by requiring banks to report their customers' holdings in disclosure statements. The Central Bank of Russia wants financial institutions to include information about cryptocurrencies, as defined by Russian law, in the documents issued for civil servants and government officials as a corruption prevention measure.

The directive proposes listing 'digital financial assets,' such as tokens issued on private blockchains and tokenized securities, alongside traditional bank deposits and payment accounts. The amendments are based on the new 'On Digital Currencies and Digital Rights' law that came into effect in September this year.

According to the draft published by the Central Bank of Russia, financial institutions will be required to report their customers' current crypto holdings, income received from selling cryptocurrencies, and mining proceeds starting from July 1, 2027. This move is seen as part of Moscow's efforts to regulate the cryptocurrency market, which was estimated at $44 billion in digital-asset holdings.

The new law legalizes key transactions with cryptocurrencies, such as investment, trading, and exchange to fiat money, but prohibits their use in domestic payments. Russians can now buy and sell crypto, with purchases limited to less than $4,000 a year per intermediary for non-qualified investors and transfers to non-custodial wallets banned.