Russia builds crypto infrastructure, adopts regulation

Russia's Sber is launching crypto trading infrastructure against the backdrop of tightening Western sanctions. Meanwhile, a recently enacted crypto bill is making crypto settlements legal for Russian companies involved in export and import transactions, while making it more difficult for regular citizens to use crypto. These developments seem to be fully in line with Russia's recent policy of finding alternatives to the global banking system, from which it has been largely excluded since the invasion of Ukraine in February 2022.

Russia's largest lender, state-run Sber, is planning to establish infrastructure for cryptocurrency trading by December 1, it announced. The move coincides with a recently enacted law introducing the notion of a crypto custodian - a role Sber is eager to take.

According to the Interfax news agency, Sber's digital depository will register ownership rights to cryptocurrencies and process most transactions offchain. Sberbank will manage active wallets for deposits, withdrawals and transfers at customers’ request.

"One of the key elements of the new infrastructure will be a digital depository that will keep track of customers' rights to cryptocurrency and record transactions off the main blockchain," Alexander Vedyakhin, first deputy chairman of Sber's board, was quoted in the lender's statement. "It will also facilitate transactions in active wallets to execute customers’ fund transfer orders."