Russia’s feared FSB to gain access to private keys of crypto wallets

The Central Bank of Russia announced that the Federal Security Service will get full access to private keys, the credentials controlling cryptocurrency wallets held by licensed custodians, after talks with banks. Starting March 1, 2027, crypto exchanges, brokers and digital depositories must give the FSB remote 24/7 access to stored data, including client records, under the SORM system that lets state agencies obtain data from provider networks. The Association of Banks of Russia had opposed giving the FSB keys and signing tools and sought a delay until 2028, but the central bank rejected the proposal and delay request. Russia legalized crypto trading through authorized intermediaries under a law effective September 1, requiring domestic holdings in custodial wallets.