Russia’s state-owned banking giant, Sberbank, has announced its intent to provide custody services for digital assets, a move that aims at playing a pivotal role in the country’s emerging crypto market. This announcement comes as the Russian Central Bank gradually shifts its stance towards digital currencies, having passed a law allowing businesses to utilize these assets in global trade as a measure to bypass Western sanctions related to the ongoing Ukraine conflict.
Anatoly Pronin, Executive Director of Sberbank’s Alternative Payment Solutions division, stated that the bank has submitted proposals to the central bank for crypto asset regulations. This move was motivated by the rising number of banks worldwide beginning to offer similar services. Pronin, during a cryptocurrency regulation discussion, mentioned that the proposed regulations would treat digital assets similarly to traditional bank account assets. Moreover, Sberbank would ensure the safety of these digital tokens.
Providing custody services for clients’ crypto assets could mean that these assets may be frozen should law enforcement authorities suspect illicit activities. However, this practice could streamline transactions and safeguard accounts against potential hacks. Gleb Zemskoy, Director of Blockchain Technology and Digital Currencies Development at Insight Finance, emphasized the indispensability of custody services for funds and crypto users. “Custodians play a crucial role in the global economy with regards to cryptocurrencies”, Zemskoy said. “Currently, this important function is being handled by private foreign companies, which poses a significant risk.”
