A case reported in Russia: the first-ever loan backed by cryptocurrency

It seems that Russia is moving forward with crypto as they wait for the full regulation.

This was the case of the Expobank, a commercial bank in Russia, who has done the country’s first-ever loan powered by cryptocurrency.

In the local news agency Kommersant’s report, Expobank gave a credit line of issuing an individual bank loan backed by what they call Waves (WAVES) tokens.

The CEO and founder of WAVES Alexander Ivanov verified the news in a social media post, clarifying that this is just collateral.

Furthermore, the new loan was distributed to local entrepreneur Mikhail Uspensky earlier this week.

The executive is deeply committed to keeping using Waves tokens with no intentions for selling. As of writing, Waves is available at the trade of about $4, down more than 5% over the past 24 hours.

Various law gurus and experts are posing confidence that the new type of loan can prematurely become recognized under Russian law, but there is still a great deal of uncertainty.

In an interview with Nikitin, a lawyer at law firm Vegas Lex mentioned that the circulation of crypto assets in Russia is basking in an of uncertainties. Cases in point, there is still clarification to which crypto transfers are legal.

Earlier, CNWN posted news about Russian’s recent law to prohibits the mentioned digital currency. More regulatory clarity is expected to come as part of another bill, which will be enacted in the late part of 2020.

Other legal experts are assuming that Waves tokens can be legally used in Russia, having not represented a payment-related tool.

In recent days, Waves has been closely linked with blockchain-related developments in Russia. I

Way back in April 2020, Russia’s Ministry of Communications added Waves Enterprise to the unified register of Russian software for computers and databases, mentioning that the Russian company owns it.

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