Trading US stocks through crypto derivatives: a lifeline for Russians or a risky game?
After the sanctions restrictions of 2022, classic brokerage accounts for Russian investors in the U.S. stock market became virtually inaccessible. However, the market abhors a vacuum — tokenized stocks and crypto derivatives on foreign platforms have replaced traditional instruments. This workaround allows earning income from price changes in tech giants' shares, using stablecoins for settlements. But how safe and legal is this method for Russian citizens? Experts' opinions are divided.
Scale of the Phenomenon: From Mass Trend to Narrow Niche
Estimates of this instrument's popularity vary. On one hand, Igor Plotnikov, Executive Director of Millpay, notes high demand for tokenized stocks of companies like Apple, Tesla, and Nvidia on platforms such as Bybit, Binance, and Deribit. Indirect data — lively discussions in specialized communities and high traffic on exchanges — confirm this is one of the most sought-after ways to invest in the U.S., especially amid the current downturn in the crypto market and a strong revival of the stock market.
On the other hand, Alexander Nam, Vice President of Digital Assets at MTS Fintech, and Yaroslav Kabakov, Director of Strategy at IC Finam, offer a more restrained assessment. They call this practice the domain of a narrow circle of experienced players, not a mass phenomenon. In their view, it is a niche tool available only to professional traders already working with digital assets.
Risks: Legal, Sanctions, and Infrastructure
Experts are unanimous in assessing potential threats. Yaroslav Kabakov highlights three key categories of risks: legal (uncertainty of legal status and complex tax accounting), sanctions (high likelihood of account blocking due to Russian citizenship), and infrastructure (a tokenized instrument does not grant rights to the real asset).
Alexander Nam emphasizes that the investor is entirely dependent on the rules of a specific foreign platform and may at any time face asset blocking without the usual protection of property rights. Igor Plotnikov adds that a tokenized stock is a derivative whose fate depends entirely on the exchange that issued it. If the platform runs into problems, the trader risks losing everything, as they have no rights to the actual securities.
Fyodor Ivanov, Director of Analytics at AML/KYT operator SHARD, focuses on the issue of proving the legality of income when returning funds to Russia. It will be extremely difficult for a bank to explain the origin of profits from such transactions, creating additional complications when withdrawing funds into the Russian regulated financial system.
Looking Ahead: Legalization and New Rules
Given upcoming changes in digital currency legislation, the market anticipates the emergence of safe domestic analogs. According to Alexander Nam, investors will be offered digital financial assets (DFAs) on foreign securities, tokenized RWAs, and various structural solutions that will eventually displace the gray segment. Igor Plotnikov believes that after the law comes into effect, citizens will be able to legally buy tokenized assets with cryptocurrency, but with restrictions on using Russian payment infrastructure. That is, buying USDT for rubles on a licensed platform, transferring them abroad, and acquiring assets — is legal. Direct purchase on a foreign exchange with rubles will be prohibited, although technically it is already impossible now.
Cryptalist Expert Opinion: Trading U.S. stocks through crypto derivatives is not a panacea, but a forced measure for those willing to tolerate high risks to maintain access to their favorite market. Until the regulatory framework in Russia is fully formed, this instrument will remain the domain of professionals, not the mass investor. I would recommend retail players wait for the emergence of licensed DFAs, which will provide at least minimal legal protection.