Huobi will boost the Russian Crypto Regulation

Crypto exchange Huobi partners with VEB Innovation Fund in a bid to to share notes on cryptocurrency regulation. The CEO of VEB Innovations stated that Huobi’s expertise will help form “a legal basis that could compete with current promising jurisdictions.” 

20 September, AtoZ Markets Cryptocurrency exchange Huobi has reportedly joined Russian’s VEB Innovation Fund in order to share notes on cryptocurrency regulation, as per the official fund’s press release that has been published earlier this Wednesday. 

Crypto Exchange Huobi Partners with VEB Innovation Fund

According to a number of online reports, the VEB Innovation Fund was established in 2011 with the purpose to invest in Russian high-tech startups. The Fund has also adopted an aim to promote local innovations in the global market. The Center of Digital Transformation was created by VEB to promote Blockchain and some other cryptocurrency-related technologies. 

One of the primary goals of the partnership with Huobi is to acquire the knowledge of cryptocurrency regulation gained by the fourth largest cryptocurrency exchange in the world and then apply it in Russia. This will be especially relevant for amending the legal framework on cryptocurrencies. 

The CEO of VEB Innovations, Vladimir Demin stated that Huobi’s expertise will help form “a legal basis that could compete with current promising jurisdictions.” Huobi spokesperson in Russia, Andrei Grachev, outlined that Huobi has planned to enter the Russian market since April. He has been quoted as saying:

“We’re glad it has finally happened. Russian investors had no communication with global trading platforms so far, and Huobi is the first to open its unit in Russia”.

Russian Digital Currencies Regulation Bill

Senior Director of Huobi Global Edward Chen added that the cryptocurrency exchange would provide Huobi Cloud services to Russian residents. It would also enable Russian investors to use Huobi OTC. 

Huobi is not the first cryptocurrency-related entity to collaborate with Russain VEB organization. According to the information on VEB’s website, it has already parented with Russian blockchain platform Waves and Ethereum.

Earlier this April, AtoZ Markets reported that the government of Russia has reportedly developed a review of the draft bill “On Digital Financial Assets.” The review has explained that the exchange of digital currencies for fiat for more than 600,000 rubles (about $9,600) or its foreign equivalent will be subject to the currency exchange regulation.

Anatoly Aksakov, the Chief of the financial market committee, has shared this information with the public. The online reports also note that transactions of more than 600,000 rubles are already under the supervision of the Russian banks. This is done in order to prevent terrorism financing and money laundering.

The latest version of the draft bill “On Digital Financial Assets” has been submitted on the 20th of March, 2018 to the State Duma, a lower house of Russian Parliament. The draft lays out the crypto and digital tokens as digital financial assets that be traded on regulated cryptocurrency.

Later in May, State Duma has accepted a bill on cryptocurrency regulation in the first of the three readings.

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