Russia’s Largest Bank Announces Cryptocurrency Development Expected in the Country for Years

Russia’s largest bank, Sberbank, has announced plans to offer custody services for Russian crypto assets in a bid to increase its influence in the country’s cryptocurrency space.

With this step, the state-owned bank aims to take a leading role in Russia’s development of digital assets.

Anatoly Pronin, Executive Director of the bank’s Alternative Payment Solutions Department, noted that cryptocurrency custody services are becoming increasingly widespread globally, and that Sberbank has submitted regulatory proposals to the Central Bank of Russia accordingly. Pronin argued that cryptocurrencies should be regulated similarly to traditional assets held in bank accounts and that the bank will ensure the security of customers’ tokens.

Russia’s Central Bank softened its stance on cryptocurrencies last year, after long opposing them, and supported legislation allowing companies to use these assets in international trade. This change is seen as part of strategies aimed at mitigating the impact of Western sanctions.

Custody services allow assets to be frozen if malicious activity is suspected, while also facilitating easier transactions and protecting accounts from cyberattacks.

“Custody services are the backbone of the cryptocurrency economy. Currently, these services are mostly in the hands of foreign private companies, which poses a significant risk,” said Gleb Zemskoy, director of blockchain technology and digital currency development at Insight Finance.

*This is not investment advice.