Key facts
- Sberbank aims to complete its cryptocurrency infrastructure by December.
- The infrastructure will feature a digital depository to manage client crypto rights and execute wallet transfers.
Russia's largest bank, Sberbank, plans to complete its cryptocurrency infrastructure by December, including a digital depository for tracking client crypto rights and handling wallet transfers. This move aligns with ongoing legislative efforts in Russia to regulate digital assets.
Sberbank's move signals a significant step towards integrating cryptocurrency services within Russia's traditional banking sector, potentially impacting global crypto adoption and Russia's ability to circumvent financial sanctions.
Russia's largest bank, Sberbank, is reportedly working towards a December deadline to establish its cryptocurrency infrastructure, according to a report by Russian news agency Interfax. A significant component of this buildout will be a digital depository designed to track clients' crypto rights and manage wallet transfers for executing client orders.
Sberbank had previously announced plans to introduce a Bitcoin and crypto wallet, along with digital asset custody services, by the end of the year. This development coincides with the State Duma's consideration of a new law, "On Digital Currencies and Digital Rights," which aims to create a comprehensive regulatory framework for cryptocurrencies in Russia. The proposed legislation is expected to cover various aspects, including retail purchases through licensed intermediaries, exchange trading, clearing operations, and the functioning of digital depositories.
Alexander Vedyakhin, First Deputy Chairman of Sberbank, was quoted as stating that numerous implementing regulations concerning depository accounting, bookkeeping, and licensing for new intermediaries still need to be drafted by regulators and the market. He affirmed Sberbank's readiness to contribute its expertise to this process.
While the use of cryptocurrency as a form of payment has been prohibited in Russia since 2022, lawmakers have expressed openness to utilizing digital assets for international settlements. President Vladimir Putin signed a law last year permitting cryptocurrency mining, provided that legal entities receive approval from the digital ministry. Foreign operations are currently restricted from engaging in business within the country.
In 2023, the Russian legislature passed a bill that legalized the use of digital currency for international payments. This move is seen as a potential strategy for the country to navigate international sanctions, particularly after being disconnected from the SWIFT payment system by U.S. and European governments following its invasion of Ukraine in 2022. Top Russian banks are anticipating the launch of crypto trading services once the new regulatory landscape takes effect. Lawmakers have indicated that investors may be required to pass a test and will face limits on the amount of cryptocurrency they can purchase.