Developments

Russia’s largest bank halts its plans to develop crypto-related services

On June 7, local financial publication Banki.ru reported that the Russian bank Sberbank CEO has officially confirmed the institution’s decision not to develop crypto-related services.

The former minister of economics and trade and CEO of Sberbank of Russia, Herman Gref, claimed that the bank has never had any ambitious plans in the crypto space. Sberbank will focus on blockchain applications for its services. Gref made his comments in an interview with the local free-to-air TV channel NTV at the St. Petersburg International Economic Forum.

He mentioned that Sberbank has never attracted a large number of clients in crypto-related activities in the institution, and he is happy that the crypto market’s hype is done. However, the regular work with blockchain tech will continue.

The CEO of Sberbank noted that he considers Bitcoin (BTC) a technical instrument for transactions rather than an investment. He shared his own story of investment in crypto; he revealed that he bought Bitcoin when it was worth about $5 and instead used it for payment purposes. A part of his Bitcoin holding was lost together with the codes.

A recent report indicated that due to the Russian central bank’s negative stance on the industry, Sberbank is halting its crypto related plans because they lack the necessary legislation. In May, Sberbank requested a client to provide specific data in their income from crypto, including the clients’ hash rate, mining equipment and crypto wallet address.

The bank also requested documents confirming lease of mining equipment or ownership and the premises housing the mining operations.

The Prime Minister of Russia, Dmitry Medvedev, mentioned that crypto regulations are not a priority of the Russian government because cryptocurrencies have been losing popularity. He concluded that the hype around Bitcoin (BTC) has reduced, but crypto markets may still rally.

Do you think the bank’s move to not develop crypto related services will stop Russians from investing in crypto?

You may also be interested in:

The Central Bank of Mexico proposes crypto regulations for the economy

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coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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