The Central Bank of Russia announced that it had successfully piloted a platform that allows users to tokenize assets and release them to traders. Among them, Currencies and equities. Furthermore, the bank issued a proposition about a legal framework for tokenization.
There was also talk about new cryptocurrency laws. Director of the CBR’s financial technology department, Ivan Zimin, noted the bank had proposed using the platform as a framework in the country’s upcoming cryptocurrency law. It will act as guidance for the legitimate businesses, which decides on tokenizing their assets.
How about Cryptocurrency Exchanges?
Last October, the Central Bank backed a potential ban on cryptocurrency payments, stating that they carry significant risks. Furthermore, local media reported the CBR is planning to update bank guidance about criminal activity. It seems Russia considers crypto exchanges as such, and it plans to label crypto transactions as suspicious.
The new guidance is still undergoing an in-house assessment. According to reports, it could authorize banks to block crypto transactions and even close the accounts of any clients found to be trading cryptocurrencies.
It seems Russia is trying to create a regulatory distinction between asset tokenization and cryptocurrencies. The first one can be effortlessly integrated into existing commercial law, but the second cannot be as easily supervised and managed by the authorities. Allegedly, that’s why Russia tries to ban crypto exchanges.
Meanwhile, experts are concerned about Russia’s action. Don Guo, CEO of technology and liquidity provider Broctagon, has criticized the country’s approach. He noted when it comes to crypto, Russia seems to have taken one step forward, two steps back. While the other two major economies – the U.S. and China continue to try regulating cryptocurrencies.
China is creating its digital currency, and the other countries seem to be fighting a losing battle to suppress it, – said Guo. He thinks the adoption of digital currencies will continue and dismissing cryptocurrencies comes with an opportunity cost.