Russia’s largest bank has been approved by the Bank of Russia to issue digital financial assets on its platform starting a month from now.
Sberbank received regulatory approval to start issuing digital financial assets (DFAs), Russia’s largest bank announced in a statement Thursday. It has been included in the list of information system operators issuing digital financial assets (DFAs) on March 17, 2022, which means it has been approved by the Bank of Russia.
Companies will be able to issue DFAs using Sberbank’s proprietary platform, proving cash requirements which will, in turn, enable them to attract market investments. Moreover, they can also acquire DFAs on the Sber system where they can invest funds lying idle to generate income.
Companies will be able to make their first transaction on our blockchain platform one month from now. We are just starting our work with digital assets, realizing that further development requires adaptation of the current regulatory framework. To do that, we are ready to work closely with the regulator and executive bodies, Sergey Popov, direction of Sberbank’s Transaction Business Division, said.
Sberbank’s license to issue DFA’s comes two month’s after Russia’s central bank warned of the risks of crypto-assets.
The Bank of Russia issued a consultation paper in January warning that wider adoption of cryptocurrencies creates significant risks for the Russian financial market. As there are no restrictions in place, a further increase in Russians’ cryptocurrency investments and an extensive involvement of banks and other financial institutions in the cryptocurrency market might exacerbate risks inherent in this activity and pose systemic threats.
The same day as Sberbank’s announcement, European Supervisory Authorities (ESAs comprising EBA, ESMA and EIOPA) issued a warning to consumers that crypto assets are highly risky and speculative.
With growing consumer interest in crypto-assets, the ESAs warned that most assets are neither suitable for retail consumers as investments nor as means of payment or exchange, warning they could lose all their invested money.
The ESAs also warned of the dangers of misleading advertisements, particularly on social media and from influencers and, that «should investments fail, there is little recourse available through existing EU financial services rules.
Commenting on the situation in Ukraine, the ESAs said they welcome the clarification by the Council of the European Union of the scope of the restrictive measures against Russian and Belarusian entities and individuals as regards crypto-assets.
In 2020, the Swiss subsidiary of Sberbank entered into a partnership with Geneva-based start-up Komogo, a blockchain trade finance platform.
But earlier this month, the Swiss Bankers Association excluded both Sberbank and Gazprombank from its organization, saying Swiss banks maintain strict compliance with all applicable regulations and measures, including sanctions imposed by Swiss, international and supranational bodies. Integrity and reputation are important key factors for the financial center.
Both Ukraine and Russia are among the top 20 countries adopting crypto according to the Chainalysis Global Crypto Adoption Index for 2021, coming in at 4th and 18th, respectively. The year before, they occupied the first two spots, although the methodology for 2021 contained one less metric than the year before, with the number of on-chain deposits dropped from the study.