Sberbank Cleared for Crypto Trading, Plans Bitcoin, Ether, USDT Launch in December

Sberbank Secures Central Bank License for Crypto Trading

Russia’s largest bank, Sberbank, has officially received authorization from the central bank to engage in cryptocurrency trading. The financial institution plans to offer trading services for Bitcoin, Ether, and USDT through its proprietary platforms starting December 1st, marking a significant step in the implementation of Russia’s cryptocurrency regulatory framework.

Expansion of Licensed Crypto Operators

The Russian Central Bank updated its registry on Tuesday, October 13th, listing 10 authorized cryptocurrency trading operators and 6 digital custody institutions. Sberbank is among these licensed entities, alongside other major players like VTB, T-Invest Lab, and Atomyze. This represents a substantial expansion from the previous week, when only four trading operators and five custody institutions were registered, doubling the number of trading operators and adding one custody institution in just seven days.

Sberbank’s Crypto Product Rollout

Sberbank previously announced its intention to launch crypto products on December 1st, supporting Bitcoin (BTC), Ether (ETH), and Tether’s USDT. These services will be integrated into three of its existing platforms: SberBank Online, SberInvestments, and SberBusiness. SberBank Online, Russia’s largest retail banking app, boasts tens of millions of users. SberInvestments caters to individual investors, while SberBusiness serves corporate clients. This multi-channel approach is expected to provide cryptocurrency trading access to a broad segment of Russia’s banking customer base.

Testing and Regulatory Oversight

According to a report by the Russian business daily Vedomosti on October 8th, Sberbank has been testing cryptocurrency buying, selling, deposit, and withdrawal functionalities within the SberBank Online app. However, Sberbank has stated that the final launch timeline is contingent on further detailed regulations to be issued by the central bank, indicating flexibility around the December 1st target date.

New Regulatory Framework

The current wave of registrations is based on Russia’s new cryptocurrency regulations, which came into effect on September 1st. These laws bring exchange operators and digital custody institutions under the purview of the central bank. The regulations maintain existing prohibitions, meaning cryptocurrencies cannot be used for the payment of goods or services but are restricted to investment and trading purposes.

Sberbank had already secured a digital custody license last week, becoming one of the first companies to do so. With the addition of the trading license, the bank now holds dual licenses for custody and trading, enabling it to offer comprehensive cryptocurrency services.

Geopolitical Context and Regulatory Shift

Sberbank’s foray into the cryptocurrency space is occurring against the backdrop of Russia’s geopolitical situation. Since 2022, Russia has faced extensive Western financial sanctions, including restrictions on the SWIFT system and the freezing of foreign exchange reserves, placing pressure on its traditional financial system. In this context, cryptocurrencies have emerged as an alternative tool for fund movement and asset allocation.

While the Russian Central Bank has historically maintained a cautious stance on cryptocurrencies, current realities have prompted a move towards “limited openness.” The underlying logic of the new legislation appears to be to bring private cryptocurrency trading under regulatory oversight, taxation, and anti-money laundering frameworks, while still preventing their use as a medium of exchange.