Trading US stocks through crypto derivatives: a boon for Russians or a risky compromise?
After the introduction of strict restrictions in 2022, Russian investors' access to the US stock market through classic brokerage accounts was almost completely blocked. However, the most enterprising part of the market participants quickly found an alternative path — tokenized stocks and crypto derivatives on foreign platforms. These instruments allow earning income from changes in the value of US company shares, using cryptocurrency for settlements. But how safe is this practice for Russian citizens, and how does it relate to upcoming changes in legislation?
Scale of the phenomenon: mainstream or niche?
Experts' opinions on the prevalence of the method are divided. Some analysts, such as Igor Plotnikov from Millpay, consider this instrument quite popular among active traders and experienced investors already working with digital assets. Indirect data — lively discussions in specialized communities and high traffic on exchanges like Bybit, Binance, and Deribit — confirm its popularity. The method's appeal is obvious: the ability to make trades with high leverage, 24/7 deposit/withdrawal in USDT, and no need to open an account with a foreign broker.
Other experts, such as Alexander Nam from MTS Fintech and Yaroslav Kabakov from IC "Finam," assess the prevalence of the phenomenon much more modestly, calling it the domain of a narrow circle of experienced players. In their opinion, it is more of a niche practice rather than a mass one.
Legal, sanctions, and infrastructure risks
In assessing potential threats, experts are unanimous. The legal status of operations is in a gray area due to the lack of clear regulation. The investor is completely dependent on the rules of a specific foreign platform, creating a risk of asset blocking without the usual protection of property rights.
The main dangers can be divided into three categories:
- Legal: complete uncertainty about the legal status of operations and complex tax accounting.
- Sanctions: high probability of account blocking due to Russian citizenship.
- Infrastructure: a tokenized instrument does not guarantee legal rights to ownership of the underlying asset.
As Fedor Ivanov, Director of AML/KYT Analytics at operator "SHARD," notes, the main problem is not so much explaining the origin of funds to the bank, but ensuring that a bank working with cryptocurrency understands these explanations. When returning funds to the Russian regulated circuit, the question of the legality of their origin remains open.
Looking to the future: regulation and legal alternatives
Considering regulatory norms, Yaroslav Kabakov believes that Russian legislators will bet on licensed digital instruments within the national financial system. Alexander Nam specifies: 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 market segment.
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 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. However, buying them on a foreign exchange directly for rubles will be prohibited.
Analyst conclusions from Cryptalist
The main divergence among experts is in assessing the scale. However, they are unanimous 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. The problem of confirming the legality of income when returning it to the Russian Federation also remains a serious barrier.
My expert opinion: Trading US stocks through crypto derivatives is a forced but extremely risky compromise. The instrument is suitable exclusively for professional participants prepared for a total loss of capital due to sanctions or technical risks. The mass investor should wait for the emergence of safe domestic DFAs, which will likely become the main legal channel for investments in foreign securities.