Russian Central Bank Proposes New Crypto Guidance for Banks

Russia Central bank has drafted new crypto guidance that would allow banks to label crypto transactions as suspicious.

February 18, 2020 | AtoZ MarketsThe Central Bank of Russia (CBR) has recently released a public announcement. Within this, it stated that it had pushed out a successful pilot platform to tokenize various assets. These assets include things like currencies, as well as equities. From there, the CBR managed to issue them to multiple investors. It, however, seems that the Bear is stepping into the crypto arms race, at this time.

Is crypto legislation imminent?

Ivan Zimin stands as the director of the financial technology department within the CBR. He explained that the CBR would probably use this new platform as a framework for Russia’s crypto laws due to be made in the near future. The new crypto framework will act as a guideline for legitimate businesses within Russia that want to tokenize its various assets.

Zimin explained that the results of the pilot program, allowed for the CBR to propose to include it in the new draft of the federal law. The law itself is called “On Digital Financial Assets,” which aims to properly legislate the crypto industry within Russia. Zimin explained that both private businesses and government bodies are supporting the new regulation.

New guidance would allow banks label crypto transactions as suspicious

According to business news site RBC, both the sale and purchase of cryptocurrencies could be considered suspicious under the new guidance. Still undergoing in-house assessment, the guidance would ask commercial banks to flag activity and authorizes them to block transactions, and even close the accounts, of any clients found to be trading cryptocurrencies.

One step forward, two steps back

As one would imagine, the local industries within Russia have been trying to push back. Don Guo stands as the CEO of Broctagon, a liquidity, and technology provider. He claims that Russia has “taken one step forward, two steps back,” when it comes to its crypto regulations.

As a whole, the world doesn’t know what to do with crypto. China has taken the “Ban everything but a state-sanctioned one” policy, while Europe is just trying to develop their own form, to begin with. Even the US, behind as it is in this field, has taken steps to try and create its own crypto.

What do you think about the new crypto guidance?  Let us know in the comment section below.

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