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Elvira Nabiullina: "provisions on digital assets should be fixed by law»

Elvira Nabiullina: “provisions on digital assets should be fixed by law»

Bank of Russia Chairman Elvira Nabiullina said that the basic provisions on digital assets should be fixed by law – this will allow the industry to develop.

During a meeting of the Council for financial market development at the Federation Council Chairman of the Central Bank Elvira Nabiullina raised the issue of legislative consolidation of the regulations about the digital assets. She noted that this is necessary for the further development of the industry.

“To develop the digital economy, we must understand that new assets and new tools will arise, and they need an adequate legal framework. Yes, there are controversial issues. If we haven’t resolved them, we need to discuss them. But the basic things, in our opinion, should be taken so as not to hinder the development of digital financial assets,” she said.

The law “on digital financial assets” was adopted only in the first reading, and is not moving forward yet, because lawmakers remain divided. Recently, the Chairman of the state Duma Committee on the financial market, Anatoly Aksakov, said that the differences of lawmakers on the regulation of crypto assets are almost settled and the law will be adopted before the end of the spring session.

Despite the delay in the adoption of regulation of digital financial assets, last year it was adopted
the law on raising funds through crowdfunding platforms-it came into force on January 1, 2020. Nabiullina noted that this law allows small businesses to produce promising products.

According to her, “crowdinvesting is the placement of applications for attracting financing by enterprises on the investment platform. And at the same time, the company must disclose information about itself, about the project in which funds are being raised.” Now the regulator is working with the government and development institutions to make this tool work in practice.

In particular, a mechanism is being developed that will compensate companies for part of the cost of attracting financing through investment platforms, as well as a guarantee mechanism that will increase the reliability of such investments.

In addition, crowdfunding can contribute to the development of factoring for small and medium-sized businesses. Nabiullina said that the Central Bank of the Russian Federation together With the Corporation of small and medium-sized businesses is working on “a mechanism for issuing and circulating factoring digital rights on investment platforms and a system for registering and storing customer obligations for payments for SME products.”