Russia issues its first crypto-backed bank loan
According to a recent report by local news agency Kommersant, Expobank, a commercial bank in Russia issued the country's first cryptocurrency-backed loan.
The provided credit is powered by Waves tokens that according to the firm's CEO and founder Alexander Ivanov were used as collateral. The loan was issued to entrepreneur Mikhail Uspensky who reportedly is committed to using Waves tokens and is not planning to sell them.
Although there is still a great deal of uncertainty, some legal experts believe that the new type of loan can potentially become recognized under Russian law. Kirill Nikitin, a lawyer at law firm Vegas Lex, said that the possible legislation of the circulation of crypto assets in Russia is still posing a lot of legal questions, such as what kind of crypto transfers exactly should be legitimized.
Such questionability has to do with Russia’s recently passed crypto law that bans payments in crypto. Another bill is planned to pass later in 2020 that is expected to bring more clarity to the matter.
However, as Waves tokens do not represent a payment-related tool other legal experts are certain that tokens can be legally used in Russia. Yuri Brisov, a local lawyer who provided counsel for the Waves-powered bank loan only confirmed this by saying that “There are no restrictions on the circulation of non-payment tokens in our country”.
Waves Enterprise is known to be closely connected with blockchain-related developments in Russia. Back in April 2020, Russia’s Ministry of Communications stipulated that Waves software belongs to a Russian company and included the company to the unified register of Russian software for computers and databases. Also, a blockchain solution from Waves has been previously tested for payments in the retail electricity sector by a local national energy grid operator.