Cryptocurrency in Banking Apps: What Will Change for Russians

Cryptocurrency in banking apps may become a familiar way for Russian retail clients to purchase digital assets: banks are preparing to provide access to cryptocurrency and digital financial assets without resorting to exchanges.

Market participants hardly dispute the direction of movement: banking services for purchasing digital assets are likely to emerge. The main questions remain the same: when will this work, in what format will banks launch products, and will they be able to attract customers from gray exchanges.

• Russian banks are considering launching services for purchasing cryptocurrency and digital financial assets.
• Experts disagree on how quickly banks can encroach on the gray market.
• New regulations may open retail access to digital assets through banks, while introducing licensing and accountability for exchanges operating outside the legal framework.

What Retail Clients Will Be Able to Buy

The most cautious scenario is described by Yaroslav Kabakov, director of strategy at Finam. He believes that access to digital assets through banking apps will indeed appear, but at the initial stage, the main focus will likely be on digital financial assets. Direct purchase of traditional cryptocurrency remains a more complex issue due to stringent regulatory and compliance requirements.

Roman Nosov from BCS World of Investments suggests waiting for the final version of the cryptocurrency bill. The initiative, which aims to open retail access to cryptocurrency and digital financial assets, comes from the Bank of Russia. It is expected that the document may be adopted in the second reading by the end of July. For banks, this means a transition from individual plans to clear rules for launching, and for clients, the emergence of a legal channel for accessing digital assets.

Fedor Ivanov, director of analytics at SHARD, also expects that private investors will gain long-awaited access to digital assets. His assessment is based on the current version of the document published on the State Duma's website.

What Services May Appear in Apps

The basic scenario for retail clients involves purchasing digital financial assets and, with more lenient regulation, individual cryptocurrency instruments. The range may expand further: sales, storage, transfers, investment products, and custodial services.

Additional value for banks may come from familiar client functions: analytics, automation of operations, and linking digital assets with other financial products. However, the speed of such expansion will depend on the final version of the bill, compliance requirements, and the readiness of banking infrastructure.

What Limitations May Be Possible

At the start, the most likely format is a cautious one: mandatory client identification, limits on amounts, and a limited set of operations. For some products, access may be reduced to purchasing or investing without the free withdrawal of assets outside the banking framework.

Such a model reduces risks for banks and regulators but makes the service less flexible for experienced market participants. This is why some traders may continue to use exchanges and decentralized protocols if they value a wide selection of instruments and access to global liquidity.

Technologies and Security of Operations

For a full-fledged launch, banks will need not only convenient buttons in the app. The basis of such services may include API integrations with blockchain, custodial solutions for asset storage, smart contracts, and KYC/AML tools for client and operation verification.

Security will be built around familiar banking practices and the specifics of digital assets: two-factor authentication, access control to private keys, transaction monitoring, anti-fraud systems, and protection of customer data. The clearer this aspect is for users, the higher the chance that banking applications will be able to compete with exchanges in the mass segment.

Who Will Find Banks a Convenient Entry Point

Alexander Nam from MTS Fintech suggests viewing the future audience not as a single market but as two different groups. The first group consists of newcomers who value simplicity, a clear interface, and a sense of security. For them, a banking application can become the most comfortable way to get acquainted with digital currencies: everything happens in a familiar environment, faster and without unnecessary technical steps.

Such a user does not need to figure out cryptocurrency wallets, private keys, and seed phrases on their own. They are already accustomed to the banking application, trust the bank's brand, and understand how basic financial operations work. This is where banks have a strong advantage over exchanges.

The second group consists of experienced investors and traders. They typically prefer direct interaction with exchanges and decentralized protocols. For them, liquidity, fees, favorable rates, and access to global markets are the most important. In this segment, banks will find it harder to compete, especially if clients retain access to international infrastructure.

How the Two Client Groups Differ

• Newcomers: key needs include security, a clear banking interface, and minimal technical complexities; the advantage of a banking application is the familiar environment and the absence of dealing with private keys and seed phrases.
• Experienced market participants: key needs include anonymity, low costs, and access to large international liquidity pools; the advantage of a banking application for them is weaker because exchanges and decentralized protocols are more important.

Which Banks Will Launch New Services Faster

According to Alexander Nam, the starting conditions for market players are generally comparable. However, large banks with developed brokerage infrastructure will be able to scale new products faster. Their advantage lies in a larger customer base, brand recognition, and established distribution channels.

At the same time, banks have a weak spot: they lack deep expertise in blockchain technologies. Simply adding a button to purchase a digital asset in the application is not enough to launch a full-fledged service. Technical solutions, risk management, transaction control, and a clear model for working with clients are needed.

Fedor Ivanov notes that the largest financial organizations in the country have already announced plans to launch cryptocurrency services. After the emergence of transparent rules, regional banks may also join this direction. For them, such products will become an opportunity to expand their service offerings and generate additional income. So far, the main restraining factor is regulatory uncertainty.

What Will Happen to Gray Exchanges

Yaroslav Kabakov believes that banking products will significantly reduce the share of the shadow market. However, in his opinion, it will not be possible to completely eliminate gray exchanges from the market.

Alexander Nam holds a similar position. If banks offer a convenient, clear, and beneficial service to the mass client, illegal exchange points will lose part of their audience. This will primarily affect newcomers and those who do not want to take risks when working with unverified platforms.

However, professional market participants are unlikely to fully switch to banking applications. For them, anonymity, flexibility, a wider choice of tools, and access to global liquidity may still be important.

Fedor Ivanov draws attention to the legal side of the reform. After the law comes into effect, the operation of unlicensed exchange points will become grounds for administrative and criminal liability. At the same time, the bill provides for the issuance of special licenses. This means that large exchanges will be able to enter the legal field, although they will have to compete not only among themselves but also with banks.

Main Outcome for the Market

Experts agree on one thing: retail access to digital assets through banking applications is becoming an increasingly likely scenario after the adoption of the cryptocurrency bill. Roman Nosov expects noticeable changes by the end of July.

However, the launch format may turn out to be more cautious than some investors expect. Yaroslav Kabakov suggests that banks will initially focus on digital financial assets rather than directly selling classic cryptocurrencies. Alexander Nam emphasizes that much will depend on the type of client: banks may replace exchanges for beginners, but attracting experienced traders will be much more difficult.

The most likely scenario appears to be phased: first, banks launch limited products for the mass client, then expand the range of operations as rules become clearer, compliance is adjusted, and technological expertise accumulates. For the market, this could mean a gradual shift of part of the audience from the gray segment to legal banking channels.

Experts see the main barriers differently. Yaroslav Kabakov and Fedor Ivanov primarily talk about regulatory risks. Alexander Nam highlights the lack of specialists with strong expertise in blockchain. This is compounded by technological, market, and operational risks: infrastructure failures, cyberattacks, asset volatility, key storage errors, and difficulties in monitoring suspicious operations. But the overall conclusion remains the same: banks can significantly squeeze the gray market in the mass segment, although completely eliminating illegal exchanges is unlikely.