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How Russia’s central bank plans to give the FSB access to crypto exchange customers’ personal data
Russia’s Central Bank has proposed rules that would give the Federal Security Service (FSB) a new way to obtain data from cryptocurrency businesses operating legally in Russia. The draft sets out how these firms would connect their databases to an SORM surveillance system, allowing the FSB to request stored information or monitor selected activity in real time.
The proposed system would require covered businesses to retain data for at least five years and send matching information automatically when the FSB requests it. The rules also leave unclear whether the system could expose private keys for custodial wallets, which could technically let officials make transactions from those wallets. Some transactions through non-custodial wallets or foreign and underground services may avoid the system for now, but the article says these routes will be prohibited from 1 July 2027.
In short
- Russia’s Central Bank has proposed FSB access to crypto service data.
- Firms would retain data for five years and respond to FSB requests.
- The draft leaves questions about access to custodial wallet keys.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters could argue that lawful access to records and selected real-time activity would help the FSB investigate crime, trace illicit finance and enforce rules in a fast-moving crypto market. Requiring firms to retain data and connect to a standard system may make oversight more consistent and give authorities tools comparable to those used in other regulated sectors.
The case against
Critics could argue that broad, direct access to customers’ financial data creates serious risks to privacy, due process and security, especially if the rules do not clearly limit what can be requested or how it can be used. The uncertainty over custodial wallet keys raises the further concern that surveillance access could expose customers’ funds to unauthorised transactions, while restrictions on alternative services may leave users with fewer ways to protect their privacy.