Trading US stocks through crypto derivatives: a lifeline or a minefield for Russians?
After the harsh sanctions restrictions of 2022, direct access for Russian investors to the US stock market through traditional brokerage accounts has been virtually cut off. However, the market, as always, has found a workaround. This involves tokenized stocks and crypto derivatives on foreign platforms. These instruments allow investors to profit from changes in the value of shares of American giants, using cryptocurrency for settlements. But how safe, widespread, and legal is this practice? We analyze this with leading market experts.
Scale of the Phenomenon: From Mass Trend to Niche Instrument
Analysts' opinions on the prevalence of this method have diverged significantly. Igor Plotnikov, Executive Director of Millpay, assesses the popularity of tokenized stocks on platforms like Bybit, Binance, and Deribit as quite high among Russians. According to him, this is one of the most sought-after ways to invest in the US, especially against the backdrop of the current downturn in the crypto market and a strong revival in the stock market. Key advantages include the ability to trade with high leverage, 24/7 deposit/withdrawal of funds in USDT stablecoins, and no need to open an account with a foreign broker.
However, Alexander Nam, Vice President of Digital Assets at MTS Fintech, and Yaroslav Kabakov, Director of Strategy at IC "Finam," hold a more restrained view. They describe trading US stocks via cryptocurrency as the domain of a narrow circle of experienced players and an exclusively niche practice. In their opinion, this is not a mass phenomenon but a tool for professionals who have long worked with digital assets.
Legal and Sanctions Risks: A Turbulence Zone
Experts are unanimous in their assessment of potential threats. Yaroslav Kabakov highlights three key categories of risks: legal (complete uncertainty regarding the legal status of transactions and complex tax accounting), sanctions-related (high probability of account blocking due to Russian citizenship), and infrastructural (a tokenized instrument never guarantees legal rights to ownership of the underlying asset).
Igor Plotnikov focuses on the nature of the instrument itself. Any tokenized stock is a derivative fully 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 lies in a "gray zone" due to the lack of clear regulation.
Fedor Ivanov, Director of AML/KYT Analytics at operator "SHARD," adds another important aspect: difficulties in confirming the legality of the origin of funds when returning them to the Russian regulated framework. It will be extremely difficult for a bank to explain the nature of income from such transactions.
Regulatory Prospects: Legalization Instead of Prohibition
Despite the risks, the future looks more certain. Yaroslav Kabakov believes that Russian legislators will bet on licensed digital instruments within the national financial system. Operations through uncontrolled foreign crypto exchanges will not be supported.
Alexander Nam specifies what legal products might look like. Most likely, investors will be offered Digital Financial Assets (DFAs) on foreign securities, tokenized RWAs, and various structural solutions. In his opinion, their active development will eventually crowd out the gray segment of the market.
Igor Plotnikov views regulation from a different angle. For him, it is not about crowding out players, 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 for 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. However, buying them directly for rubles on a foreign exchange will be prohibited.
Conclusions from Cryptalist Analyst
The main divergence among experts lies in assessing the scale. However, they are united in describing the risks. A tokenized stock is merely a derivative without rights to the real asset, making the investor vulnerable to sanctions and freezes. Additionally, the problem of confirming the legality of income when returning it to Russia is acute.
My expert opinion: Trading US stocks through crypto derivatives is a temporary but risky compromise. For experienced traders who understand the nature of the instrument and are prepared for sanctions risks, it is a working tool. For the mass investor, it is a minefield. The future undoubtedly lies in the emergence of safe domestic DFAs that will provide legal protection and transparency. Until they appear, playing with tokenized derivatives remains the domain of bold and well-informed professionals.