Crypto news

After access to the U.S. stock market through traditional brokerage accounts was almost completely blocked for Russians in 2022, the most enterprising part of investors found an alternative path. This involves trading tokenized stocks and crypto derivatives on foreign platforms. These instruments allow earning income from changes in the value of American giants' securities, using cryptocurrency for settlements. But how safe and legal is this method? Let's figure it out.

Scale of the phenomenon: a niche tool or a mass trend?

Expert opinions on the prevalence of this practice are divided. On one hand, platforms like Bybit, Binance, and Deribit offer tokenized stocks of tech giants, and demand for them, especially against the backdrop of the current downturn in the crypto market and a revival in the stock market, is clearly high. Active traders already familiar with digital assets are actively using this tool. Indirect signs—lively discussions in specialized communities and high traffic on exchanges—indicate that this is one of the most sought-after ways to invest in the U.S. for Russians.

On the other hand, a number of analysts consider this practice a narrow niche for experienced players. In their opinion, the mass investor, unfamiliar with the intricacies of the crypto market, is unlikely to actively use derivatives. Nevertheless, the appeal of the method is undeniable: round-the-clock market access, the ability to trade with leverage, and no need to open an account with a foreign broker are just some of its advantages.

Risks that cannot be ignored: legal and sanctions "pitfalls"

In assessing potential threats, experts are unanimous. The main problem is the investor's complete dependence on the rules of the foreign platform. At any moment, one could face asset blocking, left without the usual legal protection. Risks can be divided into three categories:

• Legal: complete uncertainty about the legal status of transactions and complex tax accounting.
• Sanctions: high probability of account blocking due to Russian citizenship.
• Infrastructural: a tokenized instrument never guarantees legal rights to ownership of the underlying asset. If the platform runs into problems, the trader risks being left with nothing, as they have no rights to the real securities.

Additionally, when withdrawing funds to the Russian regulated system, the issue of the legality of their origin becomes acute. The bank will need an explanation not only of the source but also of the nature of the income, which can be extremely difficult.

Future of regulation: legalization or displacement?

Russian legislators will likely bet on licensed digital instruments within the national financial system. Operations through uncontrolled foreign crypto exchanges will not be supported. "Gray" schemes will be replaced by digital financial assets (DFAs) on foreign securities, tokenized RWAs, and structural solutions. Their active development will eventually displace the illegal market segment.

It is important to understand: 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 the Russian payment infrastructure. That is, buying USDT for rubles on a 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.

My analysis: Trading crypto derivatives on U.S. stocks is undoubtedly a working but extremely risky tool for Russian investors. It is only suitable for experienced market participants who fully understand all legal and sanctions risks. I advise waiting for the emergence of legal and protected domestic alternatives—DFAs, which will ensure transparency and security of transactions. For now, every step in the "gray zone" is playing with fire, where the stakes are your own funds.