Russian Bank Sberbank CIB and the National Settlement Depository (NSD) have decided to test Russia’s first ICO with the use of the Bank of Russia’s regulatory sandbox.
The project is expected to go live by the end of Summer this year as the investment banking department of Sberbank CIB are currently finalizing the details of the project with the Russian Central Bank.
In April 2018, the Central Bank of Russia launched its own Blockchain platform for the purpose of piloting financial services and bond exchanges with the use of decentralized ledger technology.
Sberbank’s Senior Vice President, Igor Bulantsev stated that,
Sberbank CIB considers the Russian ICO market to be very promising. Many Sberbank clients are interested in this type of investment, and we plan to promote this service proactively once the appropriate legislative framework comes into effect; we will be one of the drivers to institutionalize and popularize this type of transaction.
The ICO is set to run from the start of Q3 2018, with the token’s settlements taking place on NSD’s securities exchange infrastructure — the same used for Russia’s stock market. The NSD is also set to act as custodians of the ICO, securing the digital tokens and maintaining a database of trade records.
“Our end goal is to create the fundamental basis for the development of the digital economy in our country, for the emergence of a new type of asset for investors, for ICO ecosystems, and for the circulation of digital assets on the secondary market.” Chairman of the NSD, Eddie Astanin stated.
In April 2018, the Bank of Russia announced the launch of their regulatory sandbox which would allow Russian fintech companies to test new technologies and avoid the possibility of breaking domestic laws.
The Russian parliament has just approved the first reading of new laws regulating the crypto industry which they have been analyzing since early this year. The laws define both cryptocurrencies and ICO Tokens as property and also sets the standards for blockchain-related operations like mining. The law also states that anyone who is not a qualified investor will have a limited amount of crypto transactions.