Russian Bank Eyes Bitcoin: A Shift in Crypto Stance

VTB, Russia's second-largest bank, is making waves by planning to offer direct bitcoin and crypto trading to its clients. This move comes as a response to growing customer demand for actual cryptocurrencies, not just derivatives. Despite the lack of clear regulations, VTB is testing the waters with high-net-worth clients, hoping for broader permission as the regulatory environment evolves. The Russian central bank, which once pushed for a complete ban on crypto, has recently shown a willingness to regulate the market. This shift in stance is influenced by pressure from various sectors, including lawmakers and businesses, who see the potential for legal frameworks and tax revenues. VTB is optimistic that clear rules will boost transparency and is eager to participate once regulations are finalized. Meanwhile, crypto is making significant strides in Russia, from cross-border payments to a booming industrial mining sector. VTB aims to launch full crypto trading services by 2026, reflecting a broader trend of commercial banks positioning themselves as key players in the future crypto market. On the regulatory front, a senior Kremlin official has proposed classifying crypto mining as an export sector. This suggestion comes as Russia legalized industrial crypto mining in 2024, recognizing the sector's potential as a new and undervalued export item. The push to formalize the industry is driven by the need to integrate the fast-growing sector into national accounts and crack down on illegal operations that evade taxes. However, the road to full integration is not without challenges. Regulators have tightened oversight, requiring companies to register and pay corporate taxes. Household miners are exempt from registration only if their power consumption stays within certain limits. As Russia becomes the world's second-largest Bitcoin-mining nation, the pressure is on to find a balanced approach that fosters growth while ensuring compliance.