Sberbank, Russia’s largest bank, has been authorized by the country’s monetary policy regulator to issue digital financial assets. The move comes amid tightening Western sanctions over the war in Ukraine, including limiting Moscow’s access to the global financial market.
Sberbank Added to Central Bank’s Register of Crypto Asset Issuers
The Central Bank of Russia (CBR) has added Sberbank, the country’s leading banking institution, to its register of information system operators permitted to issue digital financial assets (DFAs). The term is used to describe various types of cryptocurrencies in the country’s current legislation. On Thursday, the banking institution confirmed this news and added:
The distributed ledger based on blockchain technology will allow for accounting and distribution of DFAs that are issued via the Sber digital assets platform. This system guarantees information security and prevents information substitution.
According to the majority of state-owned banks and financial service companies, other legal entities can issue digital assets that certify monetary claims in order to attract investment. Businesses will also acquire DFAs issued on Sberbank’s platform and make other transactions with them under applicable regulations.
The law “On Digital Financial Assets,” which went into force in January 2021, regulated several crypto-related activities, including the issuance of digital coins and fundraising through tokens. But, the law did not establish rules to regulate other operations related to cryptocurrency, including their trading and mining.
The State Duma is the lower chamber of the parliament and a working group has been developing proposals to fix the regulatory gap. In February, the Ministry of Finance submitted a new draft law “On Digital Currency” which aims to legalize crypto investments but at the same time, cement a ban on the use of cryptocurrencies for payments in Russia.
Concerns have been expressed in the West about the possibility that sanctions imposed on Russia over Ukraine’s invasion are increasing. This includes financial sanctions.
Recent statements by a member of the regulatory working group in Moscow have confirmed Russia’s interest in employing digital currencies to restore its access to global finances. Russian officials now proceed with efforts to legalize the country’s crypto space.
Are you expecting Russia to invest in expanding its crypto industry despite financial sanctions? Please comment below with your opinions.
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