Russia proposed a bill on regulatory sandboxes that seeks the legalization of Blockchain and cryptocurrencies
The Russian Ministry of Economic Development has proposed a bill of regulatory sandboxes, which seeks to legalize Blockchain and cryptocurrency. However, this is not news because the bill on “regulatory sandboxes” was submitted last week to the State Duma (Russia’s parliament).
Participants in Sandboxes will be exempt from specific requirements
When it comes to Blockchain and cryptocurrency, Russia’s Ministry of Economic Development proposes some exceptions to applicable laws on Bank and Banking Activities and the Central Bank. Besides, the ministry recommends that sandboxes participants be exempted from a range of requirements aimed at financial institutions.
This document discusses eight industries that could benefit from deregulation when introducing new digital technologies. This list includes distance education, healthcare, transport, trade, finance, construction, manufacturing, and public services.
Representatives of the “regulatory sandboxes” might be exempted from many requirements that are focused on a separate “satellite” bill.
If the bill is approved, sandboxes participants can also count on easing regulations and monetary supervision. They will have the right not to comply with applicable rules on foreign exchange transactions between residents and non-residents. Besides, they can adhere to the regulations of importing and exporting money. The draft said that the Bank of Russia would supervise the sandbox, although the central bank did not respond to requests for comments.
How will regulatory sandboxes work?
For those unfamiliar, regulatory sandboxes are frameworks set up by governments and regulatory bodies that allow fintech and other innovation-driven entities to conduct live experiments in a controlled environment. Regulations are often updated and manipulated to consider unique, often unprecedented aspects of innovation technology.
In Russia, there is no territorial limit for regulatory sandboxes. The Ministry of Economic Development has previously emphasized that regulating sandboxes can be set throughout the country and on general topics.
The ministry said regulatory sandboxes would be a victory for both government and business. The former will be able to implement new regulations across Russia if the tests succeed quickly. For fintech, this will be an opportunity to test innovation without fear of breaking the law.
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