Crypto News: Russia’s Government-Authorized Platforms Issued Digital Assets Worth 1 Billion
Russia’s government-authorized platforms issued digital assets worth approximately one billion rubles in April, as reported by local news sources. The rise in the volume has been attributed to Russian companies seeking new financial instruments amid limited access to traditional capital markets.
This emerging market is still relatively small, but significant projects are expected by the end of the year, according to experts quoted by the Kommersant business daily.
Digital financial assets (DFAs) represent “digital rights” to securities or utility tokens, defined in the “On Digital Financial Assets” law that went into effect in January 2021.
While decentralized cryptocurrencies are yet to be comprehensively regulated in Russia, DFAs must have an issuing entity. Most of the DFAs issued in April were sold by the majority state-owned Sberbank, followed by Alfa-Bank, the country’s largest private bank, among other authorized platforms.
Although the DFA market remains occupied by select large players, some companies are exploring creative ways to experiment with DFAs amid dried-up capital markets for Russian businesses.
Western sanctions have severely restricted Russian access to the global financial markets, prompting Russian authorities to promote the use of digital assets, such as legalizing crypto payments in cross-border trade and developing a digital ruble.
As a result, the demand for DFAs is expected to increase, making it an exciting and emerging market to watch.
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