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Central Bank of Russia To Investigate Role Of Cryptocurrencies In Financial System

With a growing number of international financial restrictions, the Central Bank of Russia (CBR) is investigating several ways in which crypto assets and blockchain technology might be incorporated into Russia’s domestic financial system. The Central Bank of Russia (CBR) wrote on Telegram on November 7 that it had sent out a study called “Digital Assets in the Russian Federation” for public comment.

It investigates the possibility that the sanctioned nation would open its domestic market to international issuers of digital assets, especially those coming from “friendly nations.” In addition to these topics, the research looks at ways to change accounting and taxation, how to regulate digital assets, how to protect retail investors, and how digital property rights are affected by smart contracts and tokenization.

The CBR has declared that it firmly favours the “further development of digital technologies,” with the caveat that these innovations must not generate “uncontrollable” financial or cybersecurity dangers for customers. Even though blockchain technology is still young, the CBR thinks that the same rules that govern the issuance and circulation of traditional financial instruments should also apply to digital assets.

The CBR recommended that, in the immediate term, regulatory efforts should concentrate on preserving investor rights, strengthening procedures for admitting a digital asset into circulation, ensuring that the issuer is accredited, and ensuring that the issuer communicates all necessary information to investors. In a Russian-language statement posted on Telegram by the Central Bank, the bank said that even though the legal framework for digital assets has been set up, more rules are needed for the industry to grow in the future.

CBR was optimistic over the possibilities presented by tokenized off-chain assets as well. On the other hand, the bank said that legislation would have to be enacted in order to guarantee that there is a “legal relationship” between the person who has the token and the token itself. The study was released on the same day, September 22, that the Russian Ministry of Finance gave its approval for Russian nationals to use cryptocurrency as a mode of payment when making international transactions.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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