A report on Wednesday by a Russian news outlet, Kommersant, has informed that the country a local bank has accepted and issued the country’s first crypto-backed loan today. This was more like a personal transaction that transpired between a Russian businessman and a local commercial bank called Expobank.
Waves Token Used in Russia’s First Crypto-backed Loan
As confirmed by the founder of Waves, Sasha Ivanov, the Russsian businessman, used an undisclosed amount of Wave token to secure a loan from the aforementioned bank. The report on the crypto-backed loan had drawn more attention, following the country’s strict stance on digital currency, even as a payment option.
Due to the regulatory uncertainty over cryptos in Russia, however, the bank sought the attention of cryptocurrency experts and lawyers. Per the report, the conclusion was that Waves tokens are not a payment token, rather they are “other property.” This perhaps permitted the completion of the transaction per se.
While commenting on the development, Tanzila Yandieva, the head of the legal department at Expobank, mentioned that the crypto-backed loan today is a “precedent-setting for both the legal and banking communities” in the country.
Regulatory Uncertainty in Russia
Yuri Brisov and some other the lawyers involved in the matter opined that similar crypto-backed loans would soon surface under local legislation. However, a senior lawyer at BGP Litigation, Denis Durashkin, argued on that. Durashkin said that the lack of proper “legal regulations and the necessary organizational infrastructure” could stop big players in conducting such transactions.
Meanwhile, the development today is coming a month after the President of Russia, Vladimir Putin, signed a new bill that will mark the end of cryptocurrency payment in the country. The new law takes effect from January 2021.