Russia Initiates Regulatory Sandboxes to Test Crypto, Blockchain Technology and Others
Russia supposedly lacks regulations when it comes different technological advancements including the likes of, “neuro- and quantum technologies, artificial intelligence, robotics, virtual and augmented reality […] and crypto and blockchain technologies,” reports News.Bitcoin.com.
The problem that stems from this is that firms specializing in said fields are not able to introduce innovative projects – pushing Russia far back in competition compared to other countries.
For these reasons, Russia has decided to launch projects within each sector of technology in four different parts of the country, namely, Kaluga Oblast, Kaliningrad Oblast, Izvestia and Moscow. The news was first announced by the country’s Deputy Minister of Economic Development, Savva Shipov, who was quoted by News.Bitcoin.com.
As for the structure of the regulatory framework that will eventually be imposed, it has been noted that a similar approach will be taken to that of other countries that have already implemented rules. This will supposedly prevent legal risks for businesses, while being time and cost-efficient – that way innovative ideas will come flowing in.
As per the Russian President’s Advisor, Kirill Kabanov, regulatory sandboxes are essential in understanding technology, especially for countries that have yet to impose regulations. In particular, he said:
“Regulatory sandboxes will be effective if they are used as test grounds for norms that can later be applied to adapt the legal environment to the new technological structure.”
It seems like President Putin has been for regulation as well, as he has since ordered Russian deputies to look into said matters and to arrive at some framework by July 1, 2019. So far, ideas have been introduced, but the final say resulted in postpones for the most part.
A Brief Overview of Regulatory Sandboxes
According to the United Nations Security-General’s Special Advocate for Inclusive Finance for Development:
“A regulatory sandbox is a regulatory approach, typically summarized in writing and published, that allows live, time-bounded testing of innovations under a regulator’s oversight. […] Brings the cost of innovation down, reduces barriers to entry and allows regulators to collect important insights before deciding if further regulatory action is necessary.”
As for an example of a successful regulatory sandbox, News.Bitcoin.com has referenced Belarus, who has since legalized crypto-related activities within their High Technologies Park. Based on the claims made, the country’s aim is to, “become a global IT hub luring businesses and entrepreneurs from around the world with a friendly environment,” notes News.Bitcoin.com.
Another country that has announced the use of a regulatory sandbox is India, as previously reported by Bitcoin Exchange Guide (BEG). However, the country was criticized for having so many limitations, especially the restrictions imposed on cryptocurrencies.
At least this isn’t the case with Russia, as they appear to be open with the idea of testing its like, prior to shutting it down altogether.