Russia allows banks to offer crypto products to accredited investors
The Bank of Russia has permitted financial institutions to offer certain cryptocurrency-based financial instruments to accredited investors.
Russian banks are now free to provide qualified investors with a range of crypto products, including crypto derivatives, securities and other digital financial assets tied to crypto prices, the central bank announced on May 28.
A key stipulation, however, is that these products must not involve the “actual delivery of cryptocurrencies,” the Bank of Russia emphasized.
The announcement came alongside the Bank of Russia reporting a 51% increase in crypto asset inflows by Russian residents in the first quarter of 2025, totaling 7.3 trillion rubles ($81.5 billion).
T-Bank among the first to offer Bitcoin investment products
Some major Russian banks started rolling out cryptocurrency investment products immediately following the Bank of Russia’s announcement.
T-Bank (formerly Tinkoff Bank), one of the largest commercial banks in Russia, announced on May 29 the offering of digital financial assets (DFA) tied to Bitcoin (BTC).
“The tool allows you to invest in cryptocurrency in rubles through a familiar application — safely and within the legal framework of the Russian Federation, without opening an account on a crypto exchange and difficulties with protecting your wallet,” the bank said.
T-Bank’s new “smart asset” offering is issued through the Russian state-backed tokenization platform Atomyze and is available exclusively to accredited investors.
Direct crypto investments still not encouraged
While greenlighting local lenders to offer crypto products, the Russian central bank still maintains a restrictive approach regarding direct cryptocurrency investment.
“The Bank of Russia still does not recommend financial institutions and their clients to invest directly in cryptocurrencies,” the Bank of Russia said in a statement.
Related: Russia arrests Blum co-founder Vladimir Smerkis on fraud charges
The central bank also noted the ongoing government discussions on the potential launch of an experimental regime that would allow certain investors to trade crypto assets like Bitcoin directly.
Russia’s estimated CEX holdings are at $9.2 billion
In its latest financial stability review, the Bank of Russia estimated Russians’ crypto holdings on centralized exchanges (CEXs) at 827 billion rubles ($9.2 billion).
According to the authority, Bitcoin is leading Russians’ CEX holdings with a 62% share, with Ether (ETH) following at 22%. Stablecoins like Tether USDt (USDT) and Circle’s USDC (USDC) ranked third with a share of 15.9%.
Some local crypto enthusiasts observed that the actual figure of cryptocurrency held by Russians is significantly bigger than the estimated CEX holdings reported by the Bank of Russia.
“I know that [Pavel] Durov and [Alexey] Bilyuchenko alone have more money in their wallets than this amount,” Sergey Mendeleev, founder of the digital settlement exchange Exved, wrote on his Telegram channel. He hinted that Russians hold much bigger crypto amounts in wallets and decentralized exchanges.
Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
Czech Justice Minister Pavel Blazek resigned following backlash over his ministry’s sale of Bitcoin donated by a convicted criminal.
French prosecutors charged 25 people over a wave of crypto-related kidnappings. However, the masterminds remain at large.
Nigel Farage has successfully exploited the Commons recess to “grab the mic” and “dominate” the agenda, Harriet Harman has said.
Speaking on Sky News’ Electoral Dysfunction podcast, the Labour peer said that the Reform UK leader has been able to “get his voice heard” while government was not in “full swing”.
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Mr Farage used a speech this week to set himself, rather than Kemi Badenoch’s Tories, up as the main opposition to Sir Keir Starmer at the next election.
The prime minister responded on Thursday with a speech attacking the Clacton MP.
Baroness Harman said: “It’s slightly different between opposition and government because in government, the ministers have to be there the whole time.
“They’ve got to be putting legislation through and they kind of hold the mic.
“They can dominate the news media with the announcements they’re making and with the bills they’re introducing, and it’s quite hard for the opposition to get a hearing whilst the government is in full swing.
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‘Big cuts’ to fund other Reform UK policies
“What we used to do when we were in opposition before 1997 is that as soon as there was a bank holiday and the House was not sitting, as soon as the half-term or the summer recess, we would be on an absolute war footing and dominate the airwaves because that was our opportunity.
“And I think that’s a bit of what Farage has done this week,” Harman added.
“Basically, Farage can dominate the media agenda.”
She went on: “He’s kind of stepped forward, and he’s using this moment of the House not sitting in order to actually get his voice heard.
“It’s sensible for the opposition to take the opportunity of when the House is not sitting to kind of grab the mic and that is what Nigel Farage has done.”
But Baroness Harman said it “doesn’t seem to be what Kemi Badenoch’s doing”.
She explained that the embattled leader “doesn’t seem to be grabbing the mic like Nigel Farage has” during recess, and added that “there’s greater opportunity for the opposition”.
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