Trading US stocks through crypto derivatives: is it worth the risk for Russian investors?
After the sanctions restrictions of 2022, Russian investors' access to the U.S. stock market through traditional brokerage accounts was virtually cut off. However, the most enterprising part of market participants quickly found a workaround — tokenized stocks and crypto derivatives on foreign platforms. These instruments allow earning income from changes in the value of shares of American giants, using cryptocurrency for settlements. But how safe and legal is this practice?
Scale of the Phenomenon: From a Niche Instrument to a Mass Trend
Experts' opinions on the prevalence of the method are divided. Some analysts, like Millpay CEO Igor Plotnikov, note the high demand for tokenized stocks on platforms such as Bybit, Binance, and Deribit among Russians. Indirect data — lively discussions in specialized communities and high traffic on exchanges — confirm that this is one of the most popular ways to invest in the U.S. The appeal of the method is obvious: 24/7 deposit/withdrawal in USDT, the ability to use leverage, and no need to open an account with a foreign broker.
Other experts, such as MTS Fintech Vice President for Digital Assets Alexander Nam and Finam Investment Company Strategy Director Yaroslav Kabakov, assess the scale much more modestly. They call such trading the domain of a narrow circle of experienced players, not a mass phenomenon. In their view, it is a niche tool for professionals already working with digital assets.
Legal and Sanction Risks: A Gray Zone
In assessing potential threats, experts are unanimous. The key risks fall into three categories:
- Legal: complete uncertainty about the legal status of transactions and complex tax accounting.
- Sanction: high probability of account blocking due to Russian citizenship.
- Infrastructure: a tokenized instrument does not guarantee rights to the real underlying asset.
As Fedor Ivanov, Director of Analytics at AML/KYT operator "SHARD," emphasizes, the main problem is the legality of the source of funds when returning them to the Russian regulated system. Even if you can explain the source of income to the bank, it may not accept these explanations.
Future of Regulation: Legal Digital Financial Assets vs. Gray Market
Russian legislators, according to Yaroslav Kabakov, are betting on licensed digital instruments within the national financial system. Operations through uncontrolled foreign crypto exchanges will not be supported. Most likely, investors will be offered digital financial assets (DFAs) on foreign securities, tokenized RWAs, and various structural solutions. Their active development will eventually crowd out the gray segment of the market.
Igor Plotnikov views regulation differently: it is not displacement, but 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 affect the use of Russian payment infrastructure. That is, buying USDT for rubles on a domestic licensed platform, transferring them abroad, and purchasing assets there is legal. But buying them directly on a foreign exchange with rubles will be prohibited.
Expert Conclusions
Trading U.S. stocks through crypto derivatives is an effective but risky instrument. It is only suitable for experienced investors prepared for a total loss of funds due to sanction blocks or issuer problems. The legalization of DFAs in Russia will certainly create a safer alternative, but while the market remains in a gray zone, each investor must independently assess their risk tolerance. My advice: do not invest funds in such instruments that you are not prepared to lose entirely, and always consult with a professional lawyer on tax implications.