Russia’s Largest Bank Sberbank Launches Custody Service for Domestic Crypto Assets

Sberbank, Russia’s largest lender, has revealed plans to offer custody services for cryptocurrency assets in the country. According to the press release, this will play a positive role in Russia’s development in digital assets adoption.

Sberbank Submits Regulatory Proposals

Anatoly Pronin, Executive Director of Sberbank’s alternative payment solutions division, said that the bank has submitted crypto asset regulatory proposals to the central bank. He also mentioned that a growing number of banks are providing crypto custody services in other countries.

Sberbank’s proposals indicate that they will keep cryptocurrencies on behalf of their clients just like fiat and traditional banks. This will promote easier crypto transactions while ensuring the protection of funds against security breaches and unauthorized access. However, Sberbank can also freeze their clients’ crypto assets if law enforcement agencies suspect any fraudulent activity or foul play.

Russia Turns to Crypto

Sberbank’s recent move does not come as a surprise. This is because it follows the former Soviet Union state’s recent strategic crypto regulatory shift. 

In the past, Russia was skeptical of cryptocurrencies and even placed a ban on their use. At the time, Bitcoin and other digital assets were labelled as tools for money laundering.

However, the country’s central bank softened its strong opposition last year, allowing businesses to use crypto in international trade. This was done in an effort to reduce the US Dollar’s dependence and bypass imposed Western restrictions over the Ukraine conflict. 

Russia’s State Duma has first approved a law to allow cryptocurrency mining by registered mining institutions in the country. Later on, a new law regulating digital asset taxation was signed. It stated that crypto earned through mining and selling activities will be viewed as income, incurring no value-added tax (VAT).

Meanwhile, CoinTab recently reported that Ukraine issued sanctions against 60 entities that aided Russia in withdrawing assets through cryptocurrency. Among them were 55 residents of the Russian Federation.

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