Tinkoff, a large private bank in Russia, is struggling to offer cryptocurrency trading to its customers due to the central bank’s tough stance on digital assets.
The CEO of Tinkoff, Oliver Hughes, said the digital bank was ready to offer cryptocurrency trading services but was restricted by Bank of Russia’s policiesThat reported CNBC. The executive announced the news on Thursday at the International Economic Forum in St. Petersburg, stating:
“There is currently no mechanism for us to offer you this product in Russia because the central bank is in a very difficult position.”
Hughes said the bank has seen growing customer demand for investments in cryptocurrencies like Bitcoin (BTC)., and noted that “there are qualified investors out there who know what they are doing”. The CEO noted that there are still some concerns about the use of cryptocurrencies in money laundering and the risks of high volatility.
Hopefully this will evolve over time and we will be able to meet the central bank’s goals to ensure there are no money laundering issues, to ensure investors are protected, but also to offer products responsibly. “
Tinkoff is one of the most popular banks in Russia and the third largest bank by demand after the state-backed Sberbank and VTB in September 2020According to a Deloitte study, the bank is known for its “Tinkoff Investments” service, which enables private investors to invest in products such as stocks, bonds and currencies.
In February, a spokesman for Tinkoff Investments told Cointelegraph that Tinkoff had no plans to start trading cryptocurrencies because the “legal status of cryptocurrencies in Russia has not yet been established”.“Legally, cryptocurrencies are not money, property, information and payment,” said the representative.
Russia officially passed its most important cryptocurrency law “On Digital Financial Assets” in January of this year.Last month, local regulators initiated a partial lifting of Russia’s ban on crypto payments as the DFA banned the use of crypto as a payment method.