Sberbank – the largest bank in Russia plans to offer domestic cryptocurrency asset custody services.
This aims to enhance the management and protection of customer cryptocurrency assets safely while complying with new regulations from the Central Bank of Russia to promote a controlled cryptocurrency market.
MAIN CONTENT
Sberbank proposes regulations for managing digital assets similar to bank deposits.
The bank leverages new mechanisms to help customers transfer money to Europe to avoid sanctions.
Only high-net-worth investors are allowed direct access to the cryptocurrency market under the new law.
How does Sberbank want to manage cryptocurrency assets?
CEO Anatoly Pronin stated that Sberbank intends to monitor cryptocurrency assets similarly to how it safeguards bank deposits, ensuring safety and transparency for customers.
They will deploy custody services with the function to freeze assets upon detecting unusual signs and promote secure and convenient transactions for users.
"We want to protect our customers' cryptocurrency assets just like regular deposits, enhancing investor confidence."
Anatoly Pronin, CEO of Sberbank, 2023
Additionally, the Central Bank of Russia recently allowed financial institutions to launch investment products linked to cryptocurrencies such as derivatives or tokenization, but investors can only participate with non-deliverable contracts, meaning they cannot directly hold cryptocurrencies.
The risk assessment strategy applied to avoid negative impacts on financial stability is prioritized.
How does Sberbank help customers transfer money to Europe to avoid sanctions?
Sberbank designs indirect transfer solutions through intermediaries, allowing customers to convert rubles to European accounts like Revolut or N26 without displaying Sberbank's name on transactions.
Each transaction is limited to about 500,000 rubles (approximately 6,400 USD), and the total monthly limit is 3 million rubles (approximately 38,200 USD).
"This is not a dangerous activity, as the bank has always had similar money transfer methods in the past."
Sberbank employee, 2023
Meanwhile, platforms like N26 and Revolut assert that they strictly control and prohibit transactions violating sanctions.
How does Sberbank expand cryptocurrency access for high-net-worth investors?
Alexander Zozulya, Head of Global Markets at Sberbank, stated that the bank will act as a market maker to support liquidity for licensed platforms targeting 'ultra-high-net-worth' investors.
The Central Bank of Russia has also established a 'regulatory sandbox' (ELR) that allows cryptocurrency transactions to be strictly controlled in a sandbox environment, avoiding risks to the financial system.
CBR head Elvira Nabiullina emphasized that only qualified investors are allowed to participate in direct transactions of cryptocurrency assets in the ELR.
What does ELR mean for the cryptocurrency market in Russia?
The ELR regime helps Russia create a regulatory sandbox for companies and investors using cryptocurrency in international trade activities.
This provides a legal channel to evade international sanctions from the conflict in Ukraine while promoting the development of domestic digital infrastructure.
Frequently Asked Questions
When will Sberbank provide cryptocurrency custody services?
The service is expected to be launched in 2025, in line with new legal regulations and the approval of the Central Bank of Russia.
Which investors can trade cryptocurrency directly through Sberbank?
Only 'ultra-high-net-worth' investors are allowed to trade directly in the safe and controlled ELR system.
Does the Central Bank of Russia allow financial institutions to offer cryptocurrency investment products?
Yes, from the end of 2023, derivative products and cryptocurrency-related tokenization are allowed, but only in the form of non-deliverable contracts.
Does Sberbank violate sanctions when transferring money to Europe?
Sberbank uses an indirect money transfer mechanism and does not disclose the bank's name on transactions; however, intermediaries like Revolut and N26 always comply with regulations to avoid violations.
What is ELR and why is it important for the Russian cryptocurrency market?
ELR is a regulatory sandbox that allows controlled cryptocurrency trading, fostering market development and avoiding financial risks under international sanctions.
Source: https://tintucbitcoin.com/sberbank-nga-de-xuat-luu-ky-tien-dien-tu/
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