In a significant step towards crypto adoption, the Russian government has approved banks within its region to offer cryptocurrency derivatives services to its citizens. This update was announced in a press release issued by the Bank of Russia on Thursday.
Notably, this would allow investors to gain indirect exposure to many crypto assets.
Russian Banks to Offer Crypto Derivatives Services
Per the announcement, financial institutions in the country can now offer qualified investors access to derivatives, securities, and other digital financial assets tied to crypto prices. This move will pave the way for many interested investors to gain exposure to bitcoin (BTC), the world’s leading cryptocurrency, and many altcoins via traditional financial institutions.
Meanwhile, the regulator is committed to ensuring the security and safety of investors’ assets. Thus, it has added a key condition that “such instruments must be non-deliverable.” That is, the differences will be settled in cash, not in the underlying crypto asset.
“Credit institutions are advised to apply a conservative approach to assessing the risks associated with these instruments: provide for their full coverage with capital, and set individual limits on them. The Bank of Russia keeps on warning financial institutions and their clients against investing directly in cryptocurrencies,” the release added.
Additionally, to ensure that low-pocket investors do not suffer massive losses due to crypto market volatility, the Russian Government is considering the central bank’s proposal to launch a test regime that will allow only a specific class of investors to carry out crypto transactions.
Russia’s Pro-Crypto Steps
In November 2024, Russian President Vladimir Putin signed a bill into law that recognizes cryptocurrencies, including bitcoin, as property. The law noted that mining and selling digital assets, as well as services related to crypto transactions, are exempt from value-added tax (VAT). It provided clarity and reassurance to cryptocurrency enthusiasts and investors in the country.
Moreover, due to the sanctions imposed on Russia by the United States and its allies in response to the country’s war with Ukraine, the government adopted crypto as a payment system for its oil trade with China and India.
Meanwhile, the country’s pro-crypto moves sharply contrast with its five-month-old decision to six-year ban on crypto mining in ten regions.
