Russia’s Largest Bank To Provide Liquidity For Regulated Crypto Platforms

Russia’s largest bank, Sberbank, is reportedly becoming one of the official market makers for the upcoming regulated crypto platforms following the country’s regulatory developments within its digital asset landscape. The bank reportedly expects the emergence of a “new world” of instruments for investing in digital assets.

Sberbank Becomes Official Liquidity Provider

On Tuesday, Alexander Zozulya, Director of Sberbank’s Global Markets Department, told local news outlet RBC that the state-owned bank will become a liquidity provider and market maker for Russian-regulated crypto platforms.

According to experts interviewed by RBC, investors have several open questions related to investors’ risks with the Central Bank’s proposal to launch digital assets trading, including liquidity providers for the new instruments.

Zozulya highlighted the Bank of Russia’s (BOR) initiative to legitimize digital asset transactions in a regulated framework where qualified investors will be allowed to trade directly with digital assets.

“The Bank of Russia has taken an important step by announcing the development of an Experimental Legal Regime (EPR) for cryptocurrency transactions. We expect the emergence of a legal ‘sandbox’ – an analog of a regulated cryptocurrency marketplace where highly qualified investors will be allowed to transact directly with cryptocurrencies,” Zozulya stated.

As reported by Bitcoinist, Russian Finance Minister Anton Siluanov announced a plan to establish a dedicated exchange for “highly qualified investors” alongside the BOR. Siluanov affirmed that this measure would “legalize crypto assets and bring crypto operations out of the shadows.”

During a mid-May speech, Elvira Nabiullina, Head of the Bank of Russia, explained that direct digital asset investments will require regulatory changes and a separate infrastructure. Therefore, the initiative should be carried out within the framework of an experimental legal regime and be available only to specific, qualified investors.

The status of qualified investors is expected to apply to entities or individuals with investments in securities and deposits exceeding 100 million rubles or with annual incomes surpassing 50 million rubles.

Reportedly, qualified investors were also expected to become participants in the ELR, while Russia’s financial regulator would announce additional requirements for financial organizations willing to invest in crypto.

However, Nabiullina revealed that the criteria for assigning investors to the new category are currently being discussed and that the BOR expects to coordinate the decision with the government and work out within the framework of the ELR.

Russia Prepares For Crypto-Based Products

In the interview, Sberbank’s Director of Global Marketing also specified that products without direct ownership of digital assets will be available to qualified investors, like Western exchange-traded funds (ETFs).

According to Zozulya, Russia’s largest bank plans to launch crypto-based investment products, which could be structured products, ETF-like products, or mutual funds, to offer exposure to Bitcoin (BTC), Ethereum (ETH), or a roster of digital assets without directly owning them.

He affirmed that Sberbank, alongside the BOR, is “moving in this direction quite quickly.” However, he noted that the launch will require finalizing regulatory changes, including amendments to the Civil Code, Tax Code, and the Central Bank rules.

“A specific list of necessary changes has already been identified. We already have the infrastructure ready; what remains is to add new instruments. Once this is allowed, there will be a “new world” of instruments for investing in cryptocurrency without owning it,” Zozulya concluded.