Russian Ministry to Test Crypto and Blockchain in Regulatory Sandbox
Russia is facing a time of uncertainty for cryptocurrencies, and recently a federal ministry introduced legislation which would legalise crypto and blockchain development, within a special regulatory environment.
The Ministry of Economic Development of the Russian Federation has, reportedly, prepared a draft law that would allow for the testing of cryptocurrency and blockchain developments, only within a specially devised regulatory sandbox.
Sandbox to unlock blockchain and crypto testing in eight industries
According to a report on March 24th by local news agency Izvestia, the draft law was introduced to the State Duma (The lower house of the Federal Assembly of Russia) on March 17th.
They report that the experimental law would concern digital tech incorporated in 8 industries including healthcare, trade and transport.
The draft law would unlock innovative testing of projects like unmanned vehicles, remote diagnostics as well as personal data usage without written consent.
The central bank of Russia would regulate the sandbox
As reported, crypto and blockchain participants of the regulatory sandbox would be granted relief regarding the minimum size of the capital, reserve funds and reporting. Sandbox users would be exempt from the country’s foreign exchange law, the report notes.
According to the Ministry, the Bank of Russia will act as a financial market regulator within the sandbox, but the bank has declined to comment on whether or not it supports this initiative or not.
The news comes shortly after a legal executive at the Bank of Russia declared that the country’s digital assets legislation will ban the issuance and circulation of crypto. According to the official, Russia’s bill “On Digital Financial Assets” would prohibit nearly everything about crypto except holding.