Russia’s largest bank, called Sberbank, has been approved to trade cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
Russia’s central bank has added Sberbank to its register of cryptocurrency exchange providers. The move advances Moscow’s goal to bring crypto trading and custody into its financial system.
There are now nine organizations in Russia that are approved for trading cryptocurrencies.
The approvals are a reversal from the Bank of Russia’s 2022 ban on domestic crypto exchanges that prohibited Russian financial institutions from handling crypto.
A new Russian law that took effect on Sept. 1 of this year creates a regulated market involving banks, brokers, exchanges, and digital depositories.
Now, registered crypto dealers can buy and sell crypto using their own funds outside organized exchanges, while depositories record ownership and transfers, according to the central bank.
The combination provides a route to offer both trading and custody-related services for Sberbank, which is reported to be developing a digital wallet for storing digital assets.
However, domestic crypto payments remain prohibited in Russia, and the central bank says that from July of next year, crypto transactions will have to go through registered intermediaries.
Sberbank said in a statement that it plans to debut its first crypto products on Dec. 1 of this year. The bank added that it is currently testing trades in BTC and ETH, as well as some stablecoins.
Russia has changed its view on cryptocurrencies as its economy deals with punishing sanctions tied to its invasion of Ukraine.
Analysts say that, in some cases, Russia is using Bitcoin and other digital assets to get around economic sanctions.
Bitcoin is trading at $83,200 U.S. on Oct. 13.
