Cryptocurrencies are still "very volatile" and are used for shady transactions, Elvira Nabiullina has warned

The head of Russia's central bank, Elvira Nabiullina, has called for settlements in cryptocurrencies to be banned in the country. Russia currently allows cryptocurrency mining and experimental foreign-trade settlements in crypto.

Speaking at a press conference on Friday, Nabiullina stated that cryptocurrencies were still "very volatile [financial] instruments often used for shady operations." They should not be allowed to serve as a means of payment, she maintained.

Last year, Russian President Vladimir Putin raised the issue of regulating cryptocurrencies and digital assets, calling it a promising area and urged creating conditions for the circulation of digital assets, both domestically and with foreign partners.

In August 2024, Nabiullina said the Bank of Russia itself would conduct the first cross-border crypto payments by the end of that year as part of an experiment. On Friday, she said that any transactions in crypto outside of this special legal regime should be banned and those found in violation of the regulations should face legal penalties.

She still supported the idea of allowing cryptocurrencies to serve as an investment tool for certain qualified investors. Such investments would be associated with elevated risks, the top banker warned, adding that the initial experimental format could allow for developing future crypto investment regulations, as well as ensuring their transparency.

In August 2024, Russia enacted a law prohibiting the advertising of cryptocurrency to the general public and the promotion of goods or services facilitating digital currency transactions. The legislation also banned advertising digital currencies and services such as crypto exchanges or wallets. Violations can result in administrative penalties.

Cryptocurrency mining was legalized in Russia in 2024 but was also restricted in some regions until 2031 to avoid power shortages, due to its high energy consumption. In February, Russia blocked access to major cryptocurrency exchange aggregator BestChange.