Russia Considers Allowing Cryptocurrency as Collateral
Cryptocurrency in Russia is poised to receive a new legal status as it may soon be allowed to be used as collateral for securing obligations. This proposal, put forward by the Council for the Development of the Digital Economy under the Federation Council, has been sent to the Ministry of Justice.
The initiative aims to expand the set of tools businesses use to secure their obligations and make digital currency transactions more understandable for market participants. Senator Artem Sheikin emphasized that for such a scheme to work, rules are needed that can be applied in practice.
The proposal also clarifies the rules for accounting for digital assets and approaches to investigating offenses related to their use. Specifically, it suggests considering the issuer's jurisdiction and the reliability of the infrastructure through which the asset circulates when using cryptocurrency as collateral.