Sberbank to Launch Cryptocurrency Wallet by December Pending Legislation

Sberbank, the largest bank in Russia, has announced its intention to launch a cryptocurrency wallet and digital depository by December. This development is contingent upon the approval of new legislation, known as the "On Digital Currency and Digital Rights" bill, which is expected to take effect on September 1.

The planned wallet will allow customers to access authorized cryptocurrencies through the bank's applications, namely Sberbank Online and SberInvestments. Alongside the wallet, Sberbank aims to create a digital depository for securely storing and accounting for these digital assets. "As regulations emerge, we will prepare a service for our clients. Essentially, it will be a crypto wallet, which we will implement first in Sberbank Online and SberInvestments," stated Kirill Tsarev, the first deputy chairman of Sberbank's management board.

This regulatory shift follows a long history of resistance from the Bank of Russia, which previously advocated for a blanket ban on cryptocurrency activities due to concerns over financial stability. In contrast, the Finance Ministry has pushed for regulatory measures that facilitate licensed crypto trading while still prohibiting payments with cryptocurrencies.

The new law will establish licensing requirements for firms engaged in activities such as crypto trading, custody, and digital-to-fiat exchanges. As per the legislation, non-qualified investors will be allowed to trade with certain limitations, capped at approximately 300,000 rubles (around $3,800) per year. Market participants will have until July 1, 2027, to register officially.

These developments emerge amidst a complex backdrop of Russia's economic landscape. Since 2022, the country has seen fluctuating policies; while President Vladimir Putin has enacted laws restricting the use of cryptocurrencies for transactions, there has been interest in embracing crypto mining and establishing frameworks for cross-border settlements, particularly in light of sanctions affecting Russian banks.

Other financial entities in Russia, including VTB and T-Bank, are also exploring digital depositories in accordance with upcoming legislation. The Moscow Exchange is making strides in the cryptocurrency arena by offering cash-settled futures contracts linked to various cryptocurrencies, reflecting a gradual shift in the nation's approach to digital assets.