Huobi Exchange Joins Russia’s VEB Innovation Fund Platform To Share Crypto Regulation Strategies
Huobi Joins Russian Financial Services Platform To Share Notes On Cryptocurrency Regulation Issues
It was recently revealed that the tech giant Huobi has joined forces with Russia’s VEB Innovation Fund in an effort to share notes on cryptocurrency regulation. The VEB Innovation Fund was created in 2011 as a fund to invest in Russian startup tech companies and to promote local innovations in companies.
VEB was also able to create the Center of Digital Transformation as a way to promote the crypto technology, in which Huobi is a resident now. The companies have since then started the partnership in an effort to modernize the legal framework for blockchain in Russia.
As Huobi is one of the main exchanges in the world, the other company can use its regulatory experience to create a framework that can be used in Russia. The CEO of VEB Innovations, Vladimir Demin, has explained that Huobi has the necessary expertise to help a great deal in creating a legal basis that could be used to compete with the most promising regulations in the world today.
Andrey Grachev, which works as a spokesman for Huobi in Russia, has also explained that the company is aiming to enter the Russian market since the beginning of the year, as it is a giant market it is still very unexplored. The senior director of Huobi Global, Edward Chen, has affirmed that the exchange could provide services like the Huobi OTC and the Huobi Cloud in Russia.
The main issue would be to find the right regulation to offer these services in the country and that is when the partnership will be important, as Huobi will trade its notes on crypto regulations to help the other institution to craft a framework that can be effectively used in the country and, this way, open the way for Huobi to make its business grow there.
Other Companies Are Also Eyeing The Russian Market
While Huobi is one of the major crypto platforms to be eyeing this market, it is certainly not the first nor the last one. VEB has already partnered with two blockchain institutions, the world famous Ethereum and Waves, which is a blockchain platform based in Russia.
State Duma, a lower house in the Russian Parliament, has already decided to accept a bill to regulate this market. The first edition of the bill, called “On Digital Financial Assets” will define what are cryptocurrencies in the country and technologies related to the blockchain like smart contracts, mining, Initial Coin Offerings (ICOs), etc.
However, the bill is still being studied and some regulation and definitions may change over time. In fact, it was reported by local media outlets that the definition of cryptocurrencies has been recently changed in the bill and it vanished completely while the bill is now more focused on the term “tokens”.
Many Russian billionaires and investors are interested in the potential effects of this regulation, so this is a very important law. Because of this, the future of cryptos in Russia is slowly being defined right now and, if Huobi and VEB can say something about it, it will be as positive as possible for cryptocurrencies.