Though there is no full regulatory clarity yet, the banks in Russia decided not to wait for it and start acting.
Experts note that, despite the innovative nature of the transaction, it can be legally structured within the framework of the country’s law.
Expobank issued the first loan in Russia secured by cryptocurrency tokens. According to Kommersant, it was given in the form of a bank loan to an entrepreneur Mikhail Uspensky – the loan was secured by the Waves project tokens. The businessman is committed to using this asset and doesn’t plan to sell Waves token.
The credit institution believes that the transaction is “precedent in nature for both the legal and the banking community.” An escrow mechanism was used to disburse the loan. The transfer of tokens under the bank’s control was carried out with the help of a notary who also participated in the transaction.
Waves platform tokens have been qualified as “other property” subject to civil law. Despite the innovative nature of the transaction, experts note that it is easily structured within the framework of Russian legislation.
“Waves tokens can be absolutely legally used in Russia. There are no restrictions on the turnover of insolvent tokens in our country,” the publication quotes the words of the founder of the LFCS company, Yuri Borisov who accompanied the transaction.
In early August, Vladimir Putin signed the law “On digital financial assets” to enter into force on January 1, 2021. The law defines digital currency but does not address regulatory issues.
Experts believe that there is legal uncertainty in the field of circulation of digital assets preventing institutional players from taking part in such transactions. They are also scared off by the lack of organizational infrastructure, which is necessary to conclude transactions on the blockchain.
The loan issued by Expobank is the first case in Russia when a local credit institution accepted cryptocurrency as collateral for a loan.