To avoid pressure from EU and US sanctions, Russia’s largest bank plans to launch a compliant crypto trading system in December
According to Cointelegraph, Russia’s Sberbank announced plans to build crypto-asset trading infrastructure and launch a digital custody vault by December 1, to comply with Russia’s new crypto regulatory regime. The system will cover compliant trading, asset custody, and settlement services.
Alexander Vedyakhin, Sberbank’s first deputy chairman, said the digital custody vault will record users’ ownership of crypto assets. Most transaction processes can be completed outside the main blockchain, while the bank will simultaneously operate an active wallet to handle customers’ needs for storing, retrieving, and transferring crypto assets.
Russia’s first crypto bill completed review this month and will take effect on September 1. The bill also divides market participants into five categories—exchanges, brokers, asset managers, custodians, and exchange service providers—and specifies participation standards for the compliant market.
The bill also grants the Bank of Russia broad supervisory authority and sets crypto asset entry thresholds: an average market capitalization exceeding 5 trillion rubles over two years, and daily trading value exceeding 1 trillion rubles.
Notably, this move comes as the EU and the US continue to step up sanctions targeting Russia-related crypto activities. Against this backdrop, the Bank of Russia has to accelerate the development of a comprehensive legislative framework for the crypto market.
In addition, the EU’s latest round of sanctions also includes HTX (formerly Huobi) among 18 Russia-related crypto service entity listings, aiming to prohibit EU market participants from trading with it;
Moreover, back in May of this year, the UK had already imposed similar sanctions on HTX, deeming it to provide a financial conduit for Russia to evade sanctions.
Overall, with Russia rolling out a compliant crypto framework and major banks entering the crypto business, on the one hand it provides new channels for domestic companies’ cross-border trade settlement. On the other hand, it can help offset restrictions on capital flows brought by EU and US financial sanctions.
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