A senior State Duma figure has warned that cross-border crypto fraud is exploiting regulatory blind spots
A senior Russian lawmaker has warned that cross-border crypto fraud is exploiting regulatory gaps, as Moscow moves closer to finalising a framework that would bring exchanges under tighter domestic oversight and cap retail investor exposure.
The comments were made by Anton Gorelkin, First Deputy Chairman of the State Duma Committee on Information Policy and chairman of ROCIT, in a post on Telegram citing alleged fraud involving a Belarus-based crypto exchange.
According to Gorelkin, a cybersecurity specialist had identified a scheme with a turnover running into the millions of dollars, targeting Russian citizens while operating outside the country’s jurisdiction. He said the suspected location of the activity in Belarus significantly complicates the work of law enforcement agencies tasked with identifying those responsible.
While the post stopped short of naming the exchange involved, Gorelkin argued such cases illustrate the risks created when crypto trading activity sits beyond the reach of domestic regulation, allowing fraudsters to exploit both regulatory and enforcement blind spots.
Those jurisdictional challenges have long been a feature of crypto-related financial crime, particularly where exchanges operate across borders but serve retail customers in neighbouring markets. In this case, Gorelkin suggested the alleged Belarusian base of operations had limited the ability of Russian authorities to intervene effectively, reinforcing concerns about reliance on foreign platforms.
Rather than calling for outright restrictions on crypto ownership, Gorelkin positioned the issue as one of regulatory containment. He argued that creating conditions for exchanges to operate legally within Russia would give authorities greater visibility over activity and reduce the scope for abuse, particularly where retail users are involved.
Russia’s regulatory perimeter
This argument closely mirrors the direction already set out by the Central Bank of Russia, which in December published a detailed concept for regulating the domestic cryptocurrency market. The central bank has repeatedly characterised crypto assets as high-risk instruments, citing volatility, sanctions exposure, and the absence of state guarantees, while stopping short of proposing an outright ban.
Under the proposal, cryptocurrencies and stablecoins would be recognised as monetary assets that can be bought and sold, but not used for domestic payments. The framework draws a clear distinction between qualified and unqualified investors, with different access rights and safeguards applied to each group.
For unqualified investors, the central bank has proposed an annual purchase limit of no more than 300,000 rubles ($3,826.50) through a single intermediary, alongside mandatory testing designed to assess basic understanding of crypto-related risks. Qualified investors, by contrast, would be permitted to trade freely in most digital assets, with the exception of anonymous tokens whose smart contracts obscure transaction details.
Gorelkin explicitly referenced this proposed cap in his comments, arguing victims of fraud schemes often have only a superficial understanding of the crypto market. In this context, he suggested, transaction limits could help reduce the scale of potential losses when retail users are targeted by criminal networks.
The proposed framework would allow crypto transactions to take place through existing licensed infrastructure, including exchanges, brokers and trustees, with additional requirements applied to specialist crypto depositories and exchangers. Russian residents would also be permitted to purchase cryptocurrency abroad using foreign accounts, provided they notify tax authorities of such transactions.
Beyond investor limits, the central bank has signalled a gradual tightening of accountability across the sector. The current plan envisages the development of a full legislative framework by July 1, 2026, followed by the introduction of liability for illegal intermediary activity from July 1, 2027, aligned with penalties applied to unauthorised banking operations.
It is within this evolving regulatory context that Gorelkin also turned his attention to the role of banks. While acknowledging that the bill remains under development, he argued that financial institutions whose infrastructure is used in fraud schemes should take proactive steps to protect clients, even before new legal obligations formally come into force.
