Crypto news

After the introduction of strict restrictions in 2022, Russian investors' access to the U.S. stock market through traditional brokers was virtually cut off. However, the most enterprising part of market participants quickly adapted by finding an alternative route. This involves tokenized stocks and crypto derivatives on foreign platforms. These instruments allow gaining exposure to the price dynamics of American giants' securities, using cryptocurrency for settlements. But how safe and legal is this path? Let's figure it out.

Scale of the Phenomenon: A Niche Tool or a New Mainstream?

Experts' opinions on the prevalence of this method are divided. Some analysts, such as Igor Plotnikov, Executive Director of Millpay, believe that tokenized stocks on platforms like Bybit, Binance, and Deribit are quite popular among Russians. According to him, the current market situation with a correction in the crypto market and simultaneous revival in the stock market only fuels interest in this instrument. Indirect evidence of its popularity includes lively discussions in specialized communities and high traffic on the exchanges themselves.

On the other hand, experts like Alexander Nam, Vice President of Digital Assets at MTS Fintech, and Yaroslav Kabakov, Director of Strategy at Finam Investment Company, assess the scale of the phenomenon much more modestly. They describe trading U.S. stocks via cryptocurrency as the domain of a narrow circle of experienced players deeply integrated into the world of digital assets. In their opinion, this is still a niche story, not a mass trend.

Legal and Sanction Risks: A Gray Zone Without Protection

In assessing potential threats, analysts are unanimous. Yaroslav Kabakov highlights three key categories of risks: legal, sanction, and infrastructural. The investor is entirely dependent on the rules of a specific foreign platform. At any moment, they may face asset blocking, left without the usual legal protection of property.

Alexander Nam details these concerns:

• Legal risks: complete uncertainty about the legal status of transactions and complexity of tax accounting.
• Sanction risks: high probability of account blocking due to Russian citizenship.
• Infrastructural problems: a tokenized instrument never guarantees legal rights to ownership of the underlying asset. You only own a derivative tied to the price of a real stock.

Igor Plotnikov emphasizes that any tokenized stock is essentially a derivative issued by a specific exchange. If the platform runs into problems, the trader risks being left with nothing, as they have no rights to the actual securities.

Fyodor Ivanov, Director of Analytics at AML/KYT operator "SHARD," adds that when attempting to withdraw funds into the Russian regulated fiat system, the question of the legality of their origin arises. It will be extremely difficult for a bank to explain the nature of income from operations with "gray" crypto instruments.

Looking to the Future: Legalization Through Digital Financial Assets (DFAs)

Regarding upcoming legislative changes, according to Yaroslav Kabakov, Russian lawmakers are betting on licensed digital financial assets (DFAs) within the national financial system. Alexander Nam specifies that investors will likely be offered DFAs on foreign securities, tokenized RWAs, and structured solutions. Their active development over time should displace the gray market segment.

Igor Plotnikov views regulation from a different angle. For him, this is a long-awaited clarification of the rules of the game. After the law on digital currency comes into force, citizens will be able to legally buy tokenized assets with cryptocurrency. Restrictions will only apply to the use of Russian payment infrastructure. That is, buying USDT for rubles on a domestic licensed platform, transferring them abroad, and purchasing assets there will be legal. However, buying them directly on a foreign exchange with rubles will be prohibited, which is technically impossible now anyway.

Analyst's Conclusions from Cryptalist

Trading U.S. stocks through crypto derivatives is a high-risk but functional workaround for experienced users. The main disagreement among experts is in assessing the scale: some see it as mainstream, others as a narrow niche for professionals. However, they are unanimous in assessing the risks: the lack of rights to the real asset, sanction risks, and problems with legalizing income when withdrawing to Russia are a reality that cannot be ignored.

My position: This instrument is a temporary solution for those ready for full independence and aware of the absence of any protection. For the mass investor, it is much more promising to wait for the emergence of legal and safe domestic DFAs, which will provide at least some legal certainty. Playing in the "gray zone" could end in a total loss of capital.