The Bank of Russia has announced that it has given the green light to Sberbank CBR, the largest bank in Russia, to issue and trade digital financial assets (not cryptocurrencies).
The move comes amid strict Western sanctions against Russia over Russia’s military operation in Ukraine, including restricting Moscow’s access to the global financial market.
Incorporation of Sberbank to the registry of issuers of crypto assets of the Central Bank
Sberbank, the country’s leading banking institution, added to its registry of information system operators authorized to issue digital financial assets (DFA), a term used to refer to digital assets backed by traditional assets such as stocks, commodities, bonds, paper commercial etc. ., instead of cryptocurrencies.
In a statement issued on Thursday, the bank said that “DFA issued on the Sber digital asset platform will be accounted for and traded in an information system built on the basis of a distributed ledger using blockchain technology, which ensures security. of data and the impossibility of information. substitution.”
The state-owned banking and financial services company, which represents most companies, detailed that other legal entities could issue their own digital assets to certify monetary claims to attract investment.
The companies will also receive the DFAs issued on the bank’s platform and carry out other transactions with them in accordance with the applicable regulations.
The Digital Financial Assets Law, which came into force in January 2021, has regulated many activities related to cryptocurrencies, including the issuance of digital currencies and the raising of funds through cryptocurrencies.
However, the law did not provide rules for other major cryptocurrency operations, such as mining and trading in the Russian economy.
It should be noted that a working group in the State Duma, the lower house, is preparing proposals to address the regulatory loopholes. In February, the Ministry of Finance introduced a new draft law “On Digital Currency” that aims to legalize investments in cryptocurrencies, but at the same time, imposes a ban on the use of cryptocurrencies for payments in Russia.
Western governments have raised concerns that the Russian government and sanctioned figures, including financiers, are turning to cryptocurrencies and assets to evade sanctions placed on them for their “invasion of Ukraine.”
Recent statements by a member of a regulatory working group in Moscow confirm Russia’s interest in employing cryptocurrencies to regain access to global financial resources. Russian officials are now continuing their efforts to legalize the country’s cryptocurrency sector.