Central Bank of Russia Proposes Amendments To Legal Framework for Tokenization

The proposed cryptocurrency legislation in Russia could change a lot, now that a new bill for tokenization has been filed.

On February 17, the Central Bank of Russia (CBR) has made the announcement that it has completed a blockchain tokenization pilot program. Furthermore, the bank proposed that the digital assets law in Russia to be more accommodating for tokenization platforms.

The CBR Platform Offering New Investment Options

Open to all organizations, the CBR platform allows users to issue a basket of assets-backed hybrid tokens. The technology it uses is believed to expand financing opportunities for businesses, all while offering new investment opportunities. Ivan Zimin, the head for the CBR’s fintech division said, the project is one of the biggest sandbox-backed ones in the country. He was very excited about offering the option of hybrid tokens’ issuing because he believes these can adapt more rapidly to the users and businesses’ demands.

The Platform Was Developed by Nornickel

Nornickel is one of the world’s biggest mining companies and the company that has developed the CBR platform. It had previously created another platform for tokenizing palladium and started in December 2019 to test a digital asset trading one. When it comes to its stand on cryptocurrency, the Russian government is quite contradictory. Back in 2018, the country’s parliament started working on a bill meant to regulate how digital assets are being used. However, the acceptance of the bill has been many times postponed, remaining to be re-addressed until this month.

Russian Regulators Still Skeptical About Cryptocurrencies

While the new Prime Minister of Russia said the government should prioritize a digital economy, the country is still not making too much progress in this direction. The support for blockchain technology exists, but Russian regulators are still skeptical when it comes to cryptocurrencies. In the complex process of making decisions, the CBR and a few ministers were even considering in November to ban the use of cryptocurrencies for payments and even to create a legal framework for confiscating Bitcoin (BTC).

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