This week, a top executive disclosed that the largest bank in Russia will use its own dedicated platform for conducting the first transfer of digital assets in about a month. Earlier this year, Sberbank had been given permission for issuing digital financial assets.
Sberbank Preparing for Digital Asset Transaction
Sber is a majority state-owned bank and the institution has developed a platform that can be used for conducting transactions involving digital financial assets (DFAs). Deputy Chairman of Sberbank’s Management Board, Anatoly Popov made the disclosure at the International Economics Forum in St. Petersburg.
He stated that the Central Bank of Russia had added Sberbank to its register of information system operators this spring and authorized it for issuing digital financial assets. One-third of all Russian bank assets belong to Sberbank. Cryptocurrencies as well as other digital tokens are referred to as digital financial assets in terms of Russian law.
The Ministry of Finance has already proposed additional legislation in the country and a bill called ‘On Digital Finance’ has been put forward for regulating the crypto market in Russia comprehensively. Chances are that the bill will be presented in the lower house of the parliament i.e. the State Duma during its fall session.
Popov said that they are keeping an eye on new technologies and their development, included distributed ledgers. He said that they were monitoring the development of blockchain technologies, as they are being used widely and even Sber is making use of them.
Acceptance Tests Cleared
The deputy chairman of the financial services and banking company revealed that the digital asset platform they have developed has already cleared acceptance tests. Back in March, a press released had been published, which provided details that the platform would be used for issuing and circulating digital financial assets and that it is powered by blockchain technologies.
It was also stated that other companies would also be permitted to make use of the platform for issuing their own digital assets for bringing in investments. Likewise, transactions can also be conducted with the digital financial assets under the regulations that are applicable in Russia.
As of now, the only piece of legislation that regulates crypto and other digital assets in the Russian Federation is called ‘On Digital Financial Assets’, which was implemented back in January 2021. While the law does have rules that are applicable to activities, such as issuing digital coins and using tokens for fundraising, there are a lot of other areas of the crypto space that have not been addressed.
These include crypto trading and crypto mining activities, which are expected to be regulated via the new law that will be proposed. The Central Bank of Russia (CBR) had been in favor of a complete ban on crypto in the country, while the Ministry of Finance has wanted to regulate the sector instead of banning it outright. The CBR has changed its stance recently because crypto can assist the country in dealing with sanctions imposed.