Russia Mulls Cash-for-Crypto Ban at Exchanges but Experts Say It’s a Long Shot

Key Takeaways

• Russian lawmaker proposes banning cash payments at crypto exchanges to combat fraud.
• The proposal stems from rising cases of fraud using crypto exchanges.
• Experts say the proposal is outdated and would do little to stop criminals.

Russia is weighing a proposal to ban cash-for-crypto transactions at crypto exchanges—a move one lawmaker argues could help clamp down on fraud.

However, critics argue the move is impractical and won’t make a dent in today’s decentralized financial landscape.

Russian Official Pushes for Cash Ban at Crypto Exchanges

Evgeny Masharov, a member of Russia’s Public Chamber and head of the Forex Dealers Association, is pushing for a ban on accepting cash at crypto exchanges. The proposal, he says, is aimed at curbing telephone and internet fraud—a growing problem in Russia.

“This will deal a major blow to fraudsters,” Masharov told TASS, noting that many criminal schemes involve converting stolen crypto to cash via exchanges.

He also advocated for stricter oversight and a possible pilot framework to regulate crypto trading platforms under the central bank’s supervision.

Masharov suggested that Russia could build its own regulated exchange infrastructure, using domestic platforms already monitored by the Bank of Russia.

Experts Call It a Long Shot

Despite the tough talk, experts aren’t convinced a cash ban will work.

Nikita Zuborev, senior analyst at Bestchange.ru, told RBC that the ban would be ineffective. He pointed out that cash-based crypto laundering is practically nonexistent in today’s market.

Zuborev said the proposal reflects an outdated view of how crypto actually works.

Andrey Tugarin, founder of GMT Legal, echoed the skepticism.

He told RBC that banning cash payments at crypto exchanges is contradictory, especially given Russia’s lack of a comprehensive legal framework for digital assets.

According to Tugarin, you can’t regulate what isn’t clearly defined, highlighting the continued legal gray area surrounding crypto trading in the country.

Crypto Regulation Still in Flux

Russia has taken a more pro-crypto stance since 2024, legalizing crypto mining and cross-border payments in response to Western sanctions.

However, domestic crypto trading remains murky, and as cases of crypto-related fraud grow, so does the pressure to regulate.

The proposed ban highlights how regulators struggle to balance innovation with security. And while policymakers float bold solutions, experts caution that outdated ideas won’t fix modern problems.