Latest news with #BankofRussia
Crypto Insight
3 days ago
- Business
- Crypto Insight
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 . '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. 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 following at 22%. Stablecoins like Tether USDt and Circle's 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. Source:
Arabian Post
3 days ago
- Business
- Arabian Post
Sberbank Unveils Bitcoin-Linked Bonds Amid Regulatory Shift
Sberbank, Russia's largest lender, has introduced structured bonds tied to Bitcoin's performance, offering investors exposure to cryptocurrency price movements without direct ownership. These bonds, denominated in rubles and compliant with Russian law, are currently available to qualified investors through over-the-counter markets, with plans for future listings on the Moscow Exchange. The initiative follows the Bank of Russia's recent decision to permit financial institutions to offer crypto-linked financial instruments to accredited investors. Under the new guidelines, banks can provide derivatives, securities, and digital financial assets whose returns are linked to cryptocurrency prices, provided there is no actual delivery of the underlying crypto assets. This move aims to offer regulated exposure to digital assets while mitigating associated risks. Sberbank's Deputy Chairman of the Executive Board, Anatoly Popov, stated that the bank's new product provides a convenient and secure way for investors to gain exposure to cryptocurrency assets without direct ownership, ensuring full compliance with regulatory requirements on Russian infrastructure. The structured bonds are designed to cater to investors seeking returns linked to cryptocurrency dynamics within a regulated framework. ADVERTISEMENT In addition to Sberbank's offerings, the Moscow Exchange has announced plans to launch a cash-settled Bitcoin futures contract on its derivatives market in June. The SPB Exchange has also outlined intentions to introduce cryptocurrency-linked futures trading, signaling a broader acceptance of crypto-related financial products within Russia's regulated financial markets. The Bank of Russia's decision to allow crypto-linked financial instruments comes amid increasing interest in digital assets among Russian investors. The central bank reported a 51% increase in crypto asset inflows by Russian residents in the first quarter of 2025, totaling 7.3 trillion rubles . To manage potential risks, the central bank has mandated that banks and credit institutions fully back these products with capital, apply conservative risk assessments, and set individual exposure limits. Sberbank's move to offer structured bonds tied to cryptocurrency price movements represents a significant step in bridging traditional finance with digital assets in Russia. By providing regulated investment products linked to cryptocurrencies, the bank aims to meet growing investor demand while adhering to the country's cautious regulatory stance on digital assets.
Arabian Post
4 days ago
- Business
- Arabian Post
Russia Authorises Crypto Derivatives for Select Investors
Russia's central bank has authorised financial institutions to offer crypto-linked derivatives and digital financial assets to qualified investors, marking a cautious shift in its approach to digital assets. These instruments must be non-deliverable, ensuring no direct transfer of cryptocurrencies to clients. The Bank of Russia's decision allows financial institutions to provide derivative instruments, securities, and digital financial assets referencing cryptocurrency prices. However, these products are restricted to a specific class of investors and must not involve actual delivery of cryptocurrencies. The central bank continues to advise against direct investments in cryptocurrencies, citing associated risks. Financial institutions are expected to adopt a conservative approach, fully covering these instruments with capital and setting individual exposure limits. The Bank of Russia plans to formalise regulations over the next year to better manage risks associated with cryptocurrency price volatility. ADVERTISEMENT This regulatory shift aligns with broader efforts to integrate digital assets into Russia's legal framework. In April, the Finance Ministry and central bank initiated plans for a state-run crypto exchange, aiming to legitimise crypto and steer digital transactions into a controlled setting. The proposed platform, operating under Russia's experimental legal regime for financial innovation, would serve only 'super-qualified' investors, excluding retail trading. The move follows disruptions in March when the freezing of stablecoin wallets tied to Russian users exposed vulnerabilities associated with foreign-issued tokens. In response, officials have proposed developing a national stablecoin to enhance financial independence and ensure continued access to digital payments. Russia's central bank has historically maintained a cautious stance on cryptocurrencies, emphasising the risks of direct investment. However, the current policy shift indicates a measured openness to integrating digital assets within a regulated framework, reflecting a nuanced approach to balancing innovation with financial stability.
See - Sada Elbalad
16-05-2025
- Business
- See - Sada Elbalad
Russian Rouble Reaches Two-years High
Taarek Refaat The Russian Rouble reached its highest level against the US dollar in two years as negotiators arrived in Turkey amid expectations of the first direct talks between Moscow and Kyiv since 2022, and domestic demand for foreign currencies declined. Optimism about the potential end of the Kremlin's war on Ukraine has supported the Russian currency this year, as US President Donald Trump seeks to end the fighting. Data released by the Bank of Russia on Wednesday evening also showed signs of declining domestic demand for foreign currencies. The rouble rose to 80.2237 against the US dollar on the local market, its strongest level since May 31, 2023, according to Bank of Russia data. The Russian currency also appreciated against the euro to 89.74 roubles. Since last June, the Russian Central Bank has relied on interbank transactions to calculate the exchange rate after the United States imposed sanctions on the Moscow Stock Exchange. Yesterday's Central Bank report indicated that appetite for foreign currency purchases within Russia is gradually declining and has already fallen to its lowest levels since the imposition of sanctions on the Moscow Stock Exchange and the suspension of trading in the US dollar and euro. According to the bank, export-related foreign currency sales declined by only 2% despite the significant drop in oil prices, indicating that exporters are continuing to remit their revenues into the rouble at a steady pace. Globally, outside major markets, the rouble has achieved record gains this year of more than 40%, outperforming even gold, making it the best-performing asset of 2025 so far. Although Russian President Vladimir Putin announced Wednesday evening that he would send a delegation headed by Vladimir Medinsky to the negotiations expected today in Istanbul with Ukraine, these will be the first direct talks with Kyiv since 2022. Putin later said Ukraine had largely accepted these demands, a claim rejected by the Kyiv government. Alongside expectations of an improvement in the geopolitical situation, the rouble has been supported by stable currency inflows from exporters and high interest rates, according to the Central Bank. The Bank of Russia has maintained its key interest rate at record levels to curb inflation, creating a favorable environment for carry trades and supporting the local currency. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Egypt confirms denial of airspace access to US B-52 bombers Lifestyle Pistachio and Raspberry Cheesecake Domes Recipe News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War
France 24
25-04-2025
- Business
- France 24
Russia holds key rate at two-decade high despite slowdown fears
Prices have been rising quickly across the Russian economy for months, driven up by massive government spending on the Ukraine conflict and deep labour shortages. Eye-watering lending rates have meanwhile hit businesses hard, with some of the country's top corporate leaders putting pressure on the central bank to relax rates. In a statement announcing the rate decision, Russia's central bank acknowledged lending activity was "subdued" but that inflation, running above 10 percent, was still too high. Russia's target rate of inflation is four percent, but price increases are not expected to reach that level until 2026, and could average between 7-8 percent in 2025. "The Bank of Russia will maintain monetary conditions as tight as necessary to return inflation to the target in 2026," the bank said. In a video call with bank governor Elvira Nabiullina and cabinet officials on Thursday, President Vladimir Putin acknowledged that inflation was too high and that Russia's 2025 economic growth would be "slightly lower". But he said this was part of a "soft landing" that Russia was actually "striving for". Economists have warned for months of a slowdown in Russia's economic activity, with falling oil prices, high interest rates and a downturn in manufacturing all contributing to headwinds. Russian lender Raiffeisenbank said in a research note in March that confidence in the manufacturing sector had "significantly decreased over the last couple of months", and that production in the oil industry had also slowed. Russia reported strong economic growth for 2024, largely due to massive state defence spending which is set to jump by almost 30 percent again in 2025. But economists have cautioned that growth driven by the defence industry is unsustainable and does not reflect a real increase in productivity. Interest rate rises may also not be an effective tool to bring down inflation, as so much spending is being directed by the state, which is less responsive to higher borrowing costs, according to analysts.
