Trading American stocks through crypto derivatives: a lifeline or a minefield for Russians?
After the harsh sanctions restrictions of 2022, the classic access of Russian investors to the US stock market through traditional brokers has been virtually cut off. However, the most enterprising part of market participants quickly found an alternative workaround. This refers to trading tokenized shares of American companies and crypto derivatives on foreign platforms, where settlements are conducted in cryptocurrency. How widespread is this practice, what risks does it carry, and how does it relate to upcoming legislative changes? We analyze this in our report.
Scale of the Phenomenon: From Mass Trend to Niche Instrument
Expert estimates regarding the scale of this phenomenon vary significantly. Igor Plotnikov, Executive Director of Millpay, believes that tokenized shares on exchanges such as Bybit and Binance are quite in demand among Russian traders. According to him, this is supported by active discussions in specialized communities and high traffic on the platforms themselves. He notes that the appeal of the method lies in the ability to trade with high leverage, 24/7 access to funds in USDT, and the lack of need to open an account with a foreign broker.
At the same time, other experts, such as Alexander Nam, Vice President of Digital Assets at MTS Fintech, and Yaroslav Kabakov, Director of Strategy at IC Finam, assess the prevalence of the instrument much more cautiously, calling it exclusively niche and accessible only to a narrow circle of experienced professionals who have long been working with digital assets.
Legal and Sanction Risks: Complete Dependence on the Platform
In assessing potential threats, analysts' positions are much more unanimous. The key risk is the investor's complete dependence on the rules of a specific foreign platform. At any moment, one could face asset blocking, left without the usual legal protection. Alexander Nam categorizes concerns into three types: legal (uncertainty of legal status and complex tax accounting), sanctions (high probability of account blocking due to Russian citizenship), and infrastructural (a tokenized instrument does not grant rights to ownership of the underlying asset).
Igor Plotnikov emphasizes that any tokenized share is merely a derivative, completely dependent on the exchange that issued it. If the platform runs into problems, the trader risks being left with nothing, as they have no rights to the real securities. The legal status of such transactions is in a "gray zone" due to the lack of clear regulation.
Looking Ahead: Legal Alternatives and New Regulation
The main question that concerns many is how new laws will treat this practice. Yaroslav Kabakov believes that Russian legislators will bet on licensed digital instruments within the national financial system. Alexander Nam specifies that investors will likely be offered digital financial assets (DFAs) on foreign securities, tokenized RWAs, and structured products. In his opinion, their active development will eventually push out the "gray" segment of the market.
Igor Plotnikov views regulation from a different angle. He believes that 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. The scheme would look like this: buy USDT for rubles on a domestic licensed platform, withdraw them abroad, and purchase assets there — this is legal. However, direct purchase on a foreign exchange for rubles would be prohibited, although technically it is already impossible now.
Analysts agree that the main risks are the lack of rights to the real asset, vulnerability to sanctions, and difficulties in confirming the legality of income when withdrawing funds to the Russian Federation. The future likely lies in the emergence of safe domestic DFAs, which will push out the current "gray" schemes.
Expert Opinion from Cryptalist: While the market awaits legal DFAs, trading through crypto derivatives remains for Russians not so much an investment as a high-risk speculation. Complete dependence on the jurisdiction and integrity of a foreign platform makes this instrument suitable only for those who are prepared for a potential total loss of capital. The legalization of cryptocurrency in Russia will certainly clarify the rules of the game, but it will not remove the sanctions risks.