With a new law coming into effect in Russian, the country's largest bank is planning a new blockchain platform for trading, as well as a native token. According to a Monday report from Russian business news outlet RBC, Sberbank is planning to jump into crypto come 2021 when a new law "On Digital Financial Assets," or DFA, is set to come into effect. The news came from Herman Gref, the CEO and chairman of Sberbank. With over 96 million clients, the state-owned bank is the largest bank in Russia. There was speculation several months ago that Sberbank was looking into …

Russia’s vast oversight of cryptocurrency transactions appears to have one crucial blindspot: There doesn’t seem to be any liability for criminals who use digital assets to conduct illegal transactions. On Thursday, Russia’s Ministry of Finance proposed new amendments to the country’s cryptocurrency laws that seek to clarify rules around tax evasion. Under the proposed guidelines, Russians can face up to three years in prison for failing to report transactions of 45 million rubles ($583,000) or more at least twice in three years An earlier ministry proposal recommended three-year prison sentences for anyone who fails to report transactions of over 1 …

The COVID-19 pandemic has served both as an x-ray onto existing vulnerabilities in the global financial system, and as an accelerator for destabilizing tendencies, including higher sovereign and consumer debt in emerging markets. At an online meeting of the Central Bank Governors' Club, hosted this week by Bank of Russia Governor Elvira Nabiullina, representatives were unanimous in their expectations of the far-reaching consequences of the current crisis. At the meeting, the 26 central bank representatives that convened from Central Asia, the Black Sea region, the Balkan countries and beyond, also noted the pandemic-induced expansion of e-commerce, as well as digital …

Elvira Nabiullina, the head of the Bank of Russia, argued that there is a line between anonymity and privacy regarding the circulation of an upcoming digital ruble. Speaking at a press conference on Oct. 23, Nabiullina said that Russia’s digital ruble will not have the same level of anonymity as cash. However, the bank expects to strengthen user privacy, Nabiullina promised, stating: “Still, we shouldn’t confuse the anonymity with confidentiality of digital ruble transactions. Indeed, there will not be the same level of anonymity that is supported by cash transactions. But confidentiality is expected to be enhanced.” Nabiullina elaborated that …

Editor’s note Blockchain technology has attracted regulatory attention since its inception. The security of the Bitcoin network despite the value of BTC in play has consistently proved the resilience of blockchain technology in maintaining records across a vast range of parties. However, many countries have determined that Bitcoin doesn’t behave as a currency at all, or at least not a replacement for their own. The nations behind the world’s most-used fiat currencies have in many cases pointed to Bitcoin’s volatility as a critical flaw. They have decided that the rise of stablecoins, especially over the past two years, poses a …

A number of financial institutions in Russia have expressed interest in testing the country’s central bank digital currency, or CBDC. According to an Oct. 16 report by local news agency Izvestia, at least five Russian banks are interested in taking part in Russia’s non-public digital ruble pilots in the first half of 2021. The list of banks includes state-backed Promsvyazbank, the Credit Bank of Moscow, commercial bank Zenit, mortgage bank Dom.RF, and Crimea’s Russian National Commercial Bank. As reported, the latter wants to be actively involved in the first pilots in order to provide Crimea with the “most innovative banking …

The central bank of Russia proposed to set limits on annual cryptocurrency investments by non-professional investors. The Bank of Russia suggested that unqualified investors in Russia should not be allowed to invest more than 600,000 Russian rubles ($7,800) in digital assets per year. The authority laid out the new proposal in an explanatory note referring to Russia’s newly passed crypto law, “On Digital Financial Assets,” or DFA. The official statement stipulates that the new regulatory restriction will involve not only digital financial assets but also “other digital rights”: “Individuals representing unqualified investors will have a limit on the amount of …

Russian financial authorities have confirmed the government’s purported plans to issue the central bank digital currency, or CBDC. On Oct. 13, the Bank of Russia released a consultation paper on the development of the digital Russian ruble. In the statement, the central bank said that the digital ruble can become an “additional form of money alongside cash and non-cash.” The establishment of Russia’s CBDC project will require the creation of additional payment infrastructure, the bank said. The bank also said that the digital ruble will have “all the necessary properties to perform the functions of money.” The project’s timing will …

Not unlike many other jurisdictions around the world, Russia has come to recognize the potential benefits and risks flowing from cryptocurrencies by taking its first step to define and codify digital assets. The new Russian legislation dubbed “On Digital Financial Assets” sets a clear direction for the treatment of cryptocurrencies by authorities and how both individuals and businesses can handle them in everyday practice. Nevertheless, the new legislation may give pause to payments companies and fintech companies keen on expanding into the Russian market. While the approach of the Russian legislature toward cryptocurrencies — or digital assets, as they are …

Major South Korean bank KB Kookmin Bank is planning to integrate blockchain technology into its internal processes. As local news outlet Korea JoongAng Daily reported on Oct. 7, KB Kookmin stated that blockchain technology could provide a spectrum of benefits to the financial industry, including the issuance of digital tokens, funding, custodial services and trading. Taking a proactive approach toward blockchain adoption As for the bank itself, it intends to deploy decentralized ledger technology to fight money laundering, improve verification services, custodial services and token offerings. Lee Woo-yeol, chief information officer at KB Kookmin, said that the bank should take …

1. Bank of England Issues a Report on Cryptocurrencies Carlo Caraluzzo reported last Sunday that while the Bank of England’s report on digital currencies demonstrated a grasp of the technology’s potential, it fell short in other respects or perhaps outright made up its facts. “The fact is however that the Bank’s report either accidentally or intentionally ignored a great deal of evidence that indicates the exact opposite of their findings and they completely ignored international impact. In actuality, the report seems more like a piece of candy to make the Board feel better than an honest assessment of digital currencies …