According to Gold Telegraph, it’s “likely” that Russia is buying silver for its reserves, sending shockwaves through precious metals markets. For the first time, a central bank is disclosed to be actively accumulating silver, marking a sharp shift in global reserve strategy and a “monumental” moment for silver itself.

A new era if Russia is buying silver

In its 2025–2027 Federal Budget, Russia allocated $535 million to buy precious metals, with silver explicitly included alongside gold, platinum, and palladium.

This is the first time during the current precious metals bull market that any central bank has announced silver purchases for state reserves.

If Russia is buying silver, it could be helping drive the precious metal to a 14-year high, with the price surpassing $42/oz in September, up nearly 28% year-to-date.

The move is not just financial; it highlights silver’s strategic importance in a world where supply deficits and industrial demand are increasing.

Other countries are buying gold

Silver’s run is happening alongside a multi-year record spree in gold buying. Central banks globally are expected to buy 1,000 metric tons of gold in 2025, marking the fourth consecutive year at these levels.

Poland, Turkey, and China are key gold buyers, with Russia doubling its own gold shipments to China. Across Europe and Asia, gold is being purchased not only for financial stability but as a strategic hedge against currency debasement and geopolitical risk.

Both gold and silver are setting records. Gold hit an all-time high of US$3,667/oz on September 9, 2025, driven by economic instability and surging central bank demand.

Silver, meanwhile, is posting new highs in multiple currencies and regions, and maintains velocity with back-to-back weekly records. The gold-silver ratio, once over 100:1, now reflects silver’s increasing strength as gold’s “precious metal sister” comes out of the shadows.

A vote of no-confidence in fiat currencies

Central bank buying drives scarcity and price. As these institutions move their reserves out of the dollar and into metals, gold and silver serve as a vote of no-confidence in fiat currencies. It fuels inflation-hedge narratives and exacerbates supply constraints that push prices higher.

For Bitcoin and digital assets, it’s a double-edged sword: rising gold and silver prices highlight inflation risks, make hard assets attractive, and drive more capital into alternative stores of value. But they also show that Bitcoin is now competing in a world where governments are hedging with tangible assets, not just digital ones.

If Russia is buying silver, it affirms that even “tiny” markets can feel outsized pressure when central banks take notice.

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The United Kingdom has introduced new sanctions targeting Kyrgyzstan’s financial sector and cryptocurrency operations allegedly tied to Russia’s efforts to bypass Western restrictions.

The measures include actions against banks, exchanges, and individuals accused of facilitating a ruble-backed stablecoin network that processed billions of dollars in transactions.

According to a statement from the UK government, the blacklisted entities are linked to a $9.3 billion stablecoin known as A7A5, which was designed to replicate the ruble on blockchain platforms.

Officials claim the network was a direct attempt to mitigate the impact of sanctions imposed on Moscow following its invasion of Ukraine. The new measures build upon more than 2,700 existing UK sanctions on Russia and mirror steps taken by the United States earlier this month.

Crypto Exchanges and Stablecoin Network Under Scrutiny

Among those sanctioned was the Capital Bank of Central Asia and its director, Kantemir Chalbayev, who the UK says played a role in financing goods for Russia’s military.

Two Kyrgyz-based crypto exchanges, Grinex and Meer, were also placed on the sanctions list. Authorities allege these platforms were central to transactions involving the A7A5 stablecoin, which moved $9.3 billion worth of value within four months.

In addition, several entities and individuals tied to the network’s infrastructure were named, including Luxembourg-based Altair Holding, CJSC Tengricoin, Old Vector, and A7A5 director Leonid Shumakov.

UK Sanctions Minister Stephen Doughty emphasized that the measures were aimed at stopping Moscow from turning to alternative financial systems: “If the Kremlin thinks they can hide their attempts to soften the blow of our sanctions by laundering transactions through crypto networks, they are mistaken.”

Grinex, one of the sanctioned exchanges, has been widely described as a successor to Garantex, a Russian-linked exchange previously targeted by regulators. Earlier this year, Tether froze $27 million in USDT linked to Garantex after US authorities accused the platform of facilitating illicit transactions.

Kyrgyzstan’s Response and Broader Implications

The announcement drew an immediate response from Kyrgyz President Sadyr Japarov, who criticized the UK’s decision and warned against politicizing the country’s banking sector. Japarov stated that none of Kyrgyzstan’s 21 banks were engaged in helping Russia evade sanctions.

To limit exposure, he explained that only the state-owned Keremet Bank is authorized to process transactions involving the Russian ruble. Keremet, however, was sanctioned by the US earlier this year for its role in handling Russian trade payments.

Japarov also stressed Kyrgyzstan’s commitment to honoring international agreements, stating: “I will not allow the interests of our citizens and the trade and economic development of the country to be reduced to nothing.”

The latest sanctions highlight the growing focus on crypto-financial networks as tools used to bypass restrictions. Western governments have increasingly scrutinized stablecoins and exchanges operating outside traditional banking channels, with both the US and UK arguing that such platforms could weaken the effectiveness of global sanctions regimes.

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked…

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July 24, 2025

A senior Moscow lawmaker says the number of Russian crypto mining firms signed up to the Federal Tax Service’s register has risen tenfold in the past six months.

The Russian media outlet RBC reported that MPs claim that more than 1,000 firms are now “legally” mining coins.

And this has led one political leader to claim that crypto is the “future” for many Russian businesses.

Rise in Russian Crypto Mining Firms

The head of the New People People Party, the lawmaker Alexey Nechaev, told attendees at a State Duma plenary session on July 23:

“When crypto mining was emerging [in Russia], there were many who wanted to ban it. But it is clear now that the future belongs to cryptoassets. Mining will continue to develop.”

He also confirmed that per FTS data, the number of “white” miners in Russia has increased 10 times since the start of the year.

A new Russian law, introduced last year, stipulates that all crypto miners using more than 6,000 kWh of electricity per month must sign up to the register.

Regulation Trumps Bans, MP Claims

The FTS requires firms on its list to provide it with data on the number of coins they mine and the wallets where they hold their crypto.

The tax body will also begin requiring firms on the list to pay taxes on their earnings. This could bring the Russian Treasury revenues of over $500 million per year, industry chiefs have claimed.

Nechayev praised his fellow lawmakers for adopting the mining law in the fall of 2024. He said that MPs had acted with prudence by choosing to regulate, and not outlaw, mining. The lawmaker explained:

“Driving people into the shadows with fines and bans is not an effective strategy.”

Nechayev added that prior to the rollout of the new law, miners were forced to work in a grey, quasi-legal manner.

Some miners, he noted, had tried to be transparent about their activities, but could not pay taxes as most of their businesses were not officially recognized.

Nechayev said that this had previously led to “entire cities and districts” being left without electricity because miners overloaded power grids.

Miners: Investing in AI

Prior to the law, only 91 firms with crypto mining operations were able to register their businesses. This figure has now shot up to over 1,000, Nechayev said.

The New People chief added that industrial miners are also investing in AI. He claimed that this year alone, crypto miners had spent 5 billion rubles ($63 million) on AI development.

Nechaev claimed miners were now more likely to invest their money in Russia, rather than send it abroad.

Furthermore, he concluded, many mining-related power outages have stopped.

World’s Number 2 Bitcoin Miner?

The Association of Industrial Miners, the doemstic mining sector’s biggest industry group, claims Russia is now consistently ranking second in the world in terms of Bitcoin (BTC) mining volume.

Outputs are second only to those of the USA, the association says. And mining continues to develop, the body noted.

This summer, Russian crypto mining firms say their hashrate exceeded 150 EH/s (exahash per second), accounting for 16.6% of the global hashrate.

Domestic experts think up to BTC 40,000 (about $4.7 billion) was mined in Russia during the course of 2024.

Earlier this month, a top Russian policymaker urged the state to start seizing crypto from illegal crypto miners.

He said that a move to officially recongizing coins as a form of intangible property would help courts seize assets from illegal miners.

Author

Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked…

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July 10, 2025

The Russian government is poised to ban domestic data processing centers from mining crypto if they use subsidized power.

The Russian media outlet RBC reported that the government has revamped a draft law on mining that passed a first reading in the State Duma back in 2022.

Government officials are now working with lawmakers on a bid to refine the bill ahead of a second reading.

Mining Crypto Soon to Be Off-limits in Many Russian Data Centers

The bill proposes asking data processing centers to sign up to a registry curated by the Ministry of Digital Development and Communications.

This process will involve operators pledging not to mine crypto at their centers. Only operators who make these pledges will be allowed to receive electricity at preferential rates.

The bill’s architects say its goal is to prevent miners from being able to claim benefits when paying for electricity.

These benefits will only be provided only to data centers that have been formally recognized as “communication facilities.”

Russian electricity firms provide subsidized power to residential users, as well as industrial sector and commercial firms.

But in recent months, lawmakers have called for power companies to roll out special unsubsidized rates for crypto mining companies.

Membership of the registry will be entirely voluntary, the bill’s authors added. However, all firms that join the registry will be barred from even housing crypto mining rigs, even if these are not connected to the internet.

Industrial Miners Say They’re Ready to Comply

Russian crypto mining experts said the bill has not taken them by surprise. RBC quoted the Intelion Director-General Artem Shchepinov as stating that he anticipated the measure.

Shchepinov added that it would help solidify Russia’s technological sovereignty and strengthening regulated its digital infrastructure.

Others, however, complained that Moscow has not asked the private sector for input before formulating the bill.

A blockchain expert was quoted as saying that the new law could have a detrimental impact on both the industrial crypto mining industry and the conventional data center industry.

But a data center operator claimed the move would do little to dent the capabilities of major industrial miners.

These centers are “self-sufficient and sustainable,” he said, and “do not require government support.”

Dual-use Facilities

However, many major industrial miners operate dual-use centers. These facilities can house both mining and more conventional IT resources.

Shchepinov appeared to suggest that his company has already begun preparing for the change. He gave the example of Intelion’s facilities in the Samara Oblast.

The executive explained that Intelion has already divided this facility into “two clusters that provide crypto mining and AI computing in parallel.”

In May, industry figures revealed that Intelion and BitRiver’s combined revenues for the financial year 2024 hit the $200 million mark.

Around 90% of Russian industrial miners focus their efforts on Bitcoin (BTC), most experts in the nation agree.

However, a significant number of home-based miners in the nation prefer to miner Ethereum (ETH), crypto enthusiasts have told Cryptonews.com.

Illegal crypto miners operating in Russia could lose their coins and face heavy fines under new rules formulated by the nation’s Ministry of Digital Development, Communications, and Mass Media.

Per a report from Forbes Russia, the ministry says its proposal is currently undergoing interdepartmental review.

However, if the plans are adopted as-is, Russian law agencies and courts will be given the power to seize crypto from illegal miners.

Russia: Miners May Be Fined for Flaunting Bans

Under the new proposal, Russian judges will also be able to punish individuals engaging in illegal mining. Courts will be able to hand out fines worth between 100,000 to 200,000 rubles ($1,272 to $2,544).

Forbes Russia says it has seen the ministry’s proposal. It says Moscow also wants to fine and confiscate crypto from any individual found illegally participating in a mining pool.

Harsher fines still lie in store for solo entrepreneurs and officials. This group will have to pay between 200,000 and 400,000 rubles ($2,544 to $5088) if convicted.

Authorities will also gain the power to take coins from industrial miners who flaunt crypto mining rules.

The new rules will let courts impose a fine of 1 million ($12,728) to 2 million rubles ($25,456) on corporations involved in illegal mining.

The ministry wants to amend the country’s Code of Administrative Offenses, seeking to effectively make illegal mining a criminal offense.

Crypto Payments Could Also Be Criminalized

Under a law that came into force last year, unregistered Russian individuals can mine crypto at home, provided they do not use more than 6,000 kWh per month.

However, in some 10 Russian and Russian-controlled regions, mining restrictions apply. The law also states that people with unexpunged convictions for economic crimes, or those convicted of extremist or terrorist crimes, cannot mine crypto.

The law also bans certain electricity and grid management firms from mining crypto.

Additionally, the ministry plans to punish individuals and firms for making settlements in crypto in Russia outside the Central Bank-run crypto sandbox.

The ministry’s proposals include plans to fine people and firms who use crypto as a payment tool up to 1 million rubles ($12,728).

The Central Bank, however, appears to think that the threat of confiscating coins from people who seek to do business in crypto will be a bigger deterrent.

Andrey Medvedev, the bank’s Legal Department lead, told attendees at the St. Petersburg International Legal Forum last month:

“The key thing is that the [crypto] illegally used as a means of payment will be confiscated. And this will be the most painful thing.”

No New Russian Mining Bans

The draft law also include clauses pertaining to mining infrastructure operators who fail to declare their operations to the anti-money laundering agency Rosfinmonitoring.

In Russia, the term mining infrastructure operators usually refers to data center providers and crypto mining hotel firms.

The law requires these firms to inform Rosfinmonitoring about the crypto mined at their facilities, as well as their crypto wallet identifier addresses.

The development comes just days after the government decided against imposing new mining bans in more of Russia’s regions.

A government energy commission, chaired by Deputy Prime Minister Alexander Novak, ruled against a proposal to ban mining in Khakassia.

The commission also decided to postpone a proposed year-round ban on mining in the Zabaikalsky Krai and Buryatia regions.

This year, Moscow has approved a year-round ban on crypto mining in the southern part of the nation’s de facto Bitcoin mining capital Irkutsk.

However, they say that the new rules would not preclude Russian firms from using USDT or other stablecoins as payment or settlement tools in cross-border trade deals.

USDT Trading in Russia: Under Threat?

The media outlet RBC reported that the bank has issued rules ahead of its approval of trading within its crypto sandbox. The rules are set to come into force on May 26.

The sandbox was established with the view of allowing Russian firms to use crypto in international trade deals. It operates under the Central Bank’s supervision.

Moscow is preparing to expand this sandbox in the coming weeks. This will see qualified or “super- qualified” investors given permission to trade crypto on Central Bank-approved exchange platforms.

However, the bank’s latest rules set out parameters for the kind of coins investors will be allowed to trade.

These rules note that coins “must not be related to securities issued by hostile issuers.” They also make note of the need to deal with projects with a foothold in “friendly countries.”

Here, “hostile” refers to countries that have imposed or adhere to sanctions regimes on Russia. And “friendly” refers to nations who take a neutral stance toward Moscow.

The rules also include clauses that appear to ban the use of coins that could “possibly be blocked by either the issuers themselves or the payment agents or individuals who control them.”

This also appears to refer to the possibility that operators could be ordered to burn tokens belonging to Russians.

Other Stablecoins Also Under Threat?

The Central Bank did not explicitly name any cryptoassets in its rules, nor did it speak directly about a possible USDT ban.

But experts concur that most popular USD-pegged stablecoins would not fit the bank’s requirements.

Georgy Gukasyan, Director of the Tax and Legal Department at DRT (formerly Deloitte’s Russian Branch), said that the Central Bank’s definitions were “quite broad and may cover some stablecoins.”

Mikhail Uspensky, a member of Russia’s expert council on crypto regulation, said USDT “does not meet the bank’s new criteria, meaning it will not be able to circulate in Russia.”

Uspensky added that the bank has been working on the regulations for some time. And he also noted that “the use of stablecoins in international settlements is not prohibited.”

KYC Complications

Gukasyan, meanwhile, explained that Tether’s obligations to provide fiat US dollars to USDT holders “only exist for a certain group of token holders.”

He explained that in order to claim dollars, USDT token holders must pass Know-Your-Customer and Anti-Money Laundering protocols.

But these same protocols, Gukasyan said, are “fully compliant” with sanctions imposed on Russia.

He said that this means that Tether, “at its sole discretion,” could “refuse to redeem” coins belonging to people who fail to pass its verification checks.

Gukasyan said that the USDT issuer also has the ability to block tokens located “in the wallet of any user, at its sole discretion, at any time.”

The expert pointed at the case of the Russian Garantex crypto exchange as an example. In March this year, American authorities took control of Garantex’s domains and froze $26 million worth of funds.

Tether cooperated with the Washington crackdown, freezing millions of USDT tokens held in Garantex wallets.

The post New Central Bank Crypto Rules ‘Will Ban USDT Trading in Russia’ appeared first on Cryptonews.