VTB Set to Enter Crypto Trading Market
VTB, Russia’s second-largest bank by assets, intends to allow investors to buy and sell cryptocurrencies through its brokerage accounts. The financial services giant is currently offering clients to invest in crypto derivatives but plans to provide direct exposure to the digital assets next year.
Majority state-owned VTB Bank, formerly Vneshtorgbank, plans to launch crypto trading services as soon as this business is regulated. Russian financial authorities have already indicated this is likely to happen in the coming months.
VTB’s customers will be able to buy, hold, and sell decentralized digital currencies like Bitcoin directly in their individual investment accounts or regular brokerage accounts.
The announcement was made by the head of the bank’s brokerage services arm during an international investment conference held in Moscow this week.
In an interview with the business news portal RBC, Andrey Yatskov discussed a range of topics, including the legalization of the crypto market in the Russian Federation.
Crypto investments in Russia are yet to be properly regulated. Despite its previous opposition, the Central Bank of Russia (CBR) recently urged lawmakers to do that next year.
Only “highly qualified” investors are currently allowed to invest in crypto, and exclusively within the experimental legal regime (ELR) proposed by the monetary authority in March.
The digital-asset investments are also indirect. In May, the CBR authorized financial firms to offer cryptocurrency derivatives on the domestic market.
For now, these instruments are based on foreign funds and indices, with plans to permit the trading of products directly linked to the underlying assets.
Last week, the central bank confirmed it’s discussing with the Ministry of Finance (Minfin) ways to expand investor access to crypto and regulate these investments beyond the ELR.
Russian regulators are also considering ditching the narrow category for investors, as reported by Cryptopolitan in November. Private individuals who want to be granted the status of “superquals” now need to have at least 100 million rubles in traditional investments and an annual income of 50 million rubles (approximately $1.2 million and $600,000).
VTB Believes New Regulations Will Enhance Transparency
The upcoming regulatory framework will create conditions for a full-fledged network of intermediaries, including crypto brokers and providers of depository services, establishing a licensing regime for them.
“Such regulation will definitely increase the transparency of this market,” VTB’s Andrey Yatskov commented on the sidelines of the “Russia Calling!” forum, which is organized by the bank.
“We certainly see ourselves there and I believe it will be beneficial as the infrastructure is already in place and there is a large number of clients,” he added.
Asked whether his organization intends to become a major licensed player in this market, the executive said that would depend on the final rules.
In that regard, Yatskov also highlighted that the Bank of Russia assigns a significant role to professional market participants and elaborated:
“As we see it, real cryptocurrency will be available for purchase through brokerage accounts. It’s unlikely that major players will be able to abandon this approach. Therefore, based on this position, we will also participate in the process.”
Although the broker does not expect the new regulations to make crypto the next big thing on the Russian market right away, he acknowledged that “client interest in crypto assets is certainly high, reflecting a global trend.”
As a clear indication of departure from its long-term conservative stance on crypto assets, the CBR recently revealed it wants to allow commercial banks to work with cryptocurrencies and permit mutual funds to invest in crypto-based derivatives.