Russia’s Sberbank Seeks Approval for Crypto Custody Services Amid Regulatory Shift

Sberbank, Russia's largest state-owned lender, is pushing for regulatory approval to offer custody services for cryptocurrency assets. The move signals a broader acceptance of digital currencies within the country, as government institutions soften their previously rigid stance.

Anatoly Pronin, executive director of Sberbank’s alternative payment solutions division, confirmed proposals have been submitted to the central bank. The plan aims to treat digital assets similarly to traditional bank-held funds, providing user protection and legal oversight. If approved, the service WOULD enable token freezing at law enforcement's request while streamlining transactions and reducing hack vulnerabilities.

Geopolitical pressures, including Western sanctions tied to the Ukraine conflict, are driving Russia's regulatory recalibration. Last year marked a pivotal shift when the central bank backed legislation permitting cryptocurrency use in cross-border trade—a stark reversal from prior resistance.