Russia Tightens Cash Controls, Posing Hurdles for Crypto Traders

Russia has introduced a new rule requiring banks to monitor ATM withdrawals for potential fraud. Effective September 1, if a transaction appears suspicious, banks must immediately alert the customer and limit cash withdrawals to ₽50,000 per day for 48 hours. While the measure is seen as a step toward reducing fraud, experts warn it could affect crypto trading, particularly for small exchanges and peer-to-peer platforms that depend on cash transactions.

Banks Flag Suspicious Transactions

The Central Bank of Russia (CBR) has emphasized the urgent need to address fraudulent activity. In the second quarter of 2025, fraudsters reportedly carried out 273,100 scams totaling ₽6.3 billion. To curb this, the CBR issued guidelines that help banks identify potentially risky transactions.

• Withdrawals made at unusual times, for uncommon amounts, or at ATMs rarely used by the customer should be considered warning signs by banks.
• Using QR codes or virtual cards instead of regular payment cards must be flagged as a potential indicator of fraud.
• Sudden changes in a customer’s phone activity, including altered call patterns or an increase in messages from unknown numbers within six hours before a withdrawal, are to be treated as suspicious behavior.
• Cash withdrawals conducted shortly after taking a loan, increasing withdrawal limits, receiving transfers over ₽200,000 via the Faster Payments System, or closing a deposit early should be recognized as possible signs of fraudulent activity.
• Altering the phone number for online banking or using a device with changed characteristics or malware can also raise red flags.

Impact on Crypto Businesses

Analysts warn that these measures could disrupt cash-dependent cryptocurrency operations. Denis Polyakov, head of digital economy practice at GMT Legal, noted that crypto exchanges will need to adjust their business models. Large cash withdrawals are now largely restricted to bank branches, which could slow transaction speeds and create challenges for those handling cash on behalf of these platforms.

Despite these operational hurdles, legal changes are considered a more pressing concern. Ignat Likhunov, founder of the Cartesius legal agency, pointed out that restrictions on cash withdrawals are not the main challenge for crypto businesses.

He added that the amended Article 187 of Russia’s Criminal Code, which governs the circulation of payment instruments, now makes using another person’s bank card illegal. He noted that Russian authorities have already begun questioning money mules, and the scope has now expanded to include cryptocurrency traders.

Regulatory Pressure and Risks for Crypto Traders

Cryptopolitan reported that Russia is stepping up controls over crypto, with certain activities now carrying penalties, including restrictions on bank accounts. Likhunov suggests that crypto traders can reduce exposure by using cards with established transaction histories and limiting fund transfers to trusted parties.

Likhunov also offered a prediction on the future of crypto in Russia, suggesting that additional restrictions—or even a full ban—could be introduced in the coming months. This view aligns with the Central Bank’s cautious approach. In July, TASS reported remarks by Governor Elvira Nabiullina, who said the Bank of Russia has no plans to invest in cryptocurrencies because of their volatility and risk, while emphasizing that digital assets remain unsuitable for domestic payments.