Crypto news

After the imposition of strict sanctions in 2022, classic brokerage accounts for Russian investors in the U.S. stock market became virtually inaccessible. However, the most enterprising part of market participants found an alternative — tokenized stocks and crypto derivatives on foreign platforms. This instrument allows earning income from changes in the value of U.S. company shares, using cryptocurrency for settlements. But how safe and legal is this practice?

Scale of the Phenomenon: From Niche to Mainstream

Expert opinions are divided. On one hand, Igor Plotnikov, Executive Director of Millpay, claims that tokenized shares of tech giants on platforms like Bybit, Binance, and Deribit are in high demand among Russians. Active traders and those already working with digital assets show particular interest. The current market situation only fuels this interest: amid a downturn in the crypto market, there is a strong revival in the stock market.

Indirect data — lively discussions in specialized communities and high traffic on exchanges — confirms that this is one of the most sought-after ways to invest in the U.S. Plotnikov highlights key advantages: the ability to trade with high leverage, round-the-clock deposit and withdrawal of funds in USDT stablecoins, and no need to open an account with a foreign broker.

On the other hand, 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 the domain of a narrow circle of experienced players and an exclusively niche practice.

Legal and Sanction Risks: A Unified Assessment

In assessing potential threats, experts are almost unanimous. Kabakov points to heightened legal, sanction, and infrastructure risks. The investor is entirely dependent on the rules of a specific foreign platform and may face asset blocking at any moment, without the usual protection of property rights.

Alexander Nam divides concerns 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 never guarantees legal rights to ownership of the underlying asset.

Igor Plotnikov emphasizes the nature of the instrument itself. Any tokenized stock is a derivative, entirely 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 transactions is in a gray area due to a lack of clear regulation.

Fedor Ivanov, Director of AML/KYT Analytics at operator SHARD, adds that on centralized exchanges, difficulties are related to compliance, which has become too demanding for users with Russian passports. On decentralized platforms, he sees no particular risks beyond the standard loss of funds due to high volatility. The main problem, he says, arises when withdrawing funds into the Russian regulated system: it is extremely difficult for a bank to explain the legality of income from such operations.

Looking Ahead: Regulation and Legal Alternatives

Yaroslav Kabakov believes that Russian lawmakers will focus on licensed digital instruments within the national financial system, and operations through uncontrolled foreign crypto exchanges will not be supported. Alexander Nam specifies: investors will likely be offered digital financial assets (DFAs) on foreign securities, tokenized RWAs, and various structural solutions. In his view, their active development will eventually crowd out the gray market segment.

Igor Plotnikov views regulation from a different angle. For him, it is not about pushing players out, but about long-awaited clarification of the rules. He explains 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. 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. Though technically, this is already impossible, as foreign platforms do not accept rubles.

Analytical Conclusion: Trading U.S. stocks via crypto derivatives is a compromise between access and security. For experienced traders who understand the risks and are prepared for them, this can be an effective tool. However, for the mass investor unfamiliar with the nuances of crypto compliance and sanction law, this path involves unacceptably high risks, including total loss of capital. Until clear and legal domestic alternatives, such as DFAs, emerge, this instrument will remain the prerogative of professionals operating at their own risk.