Russian Central Bank Registers Nation’s First Digital Asset Manager
Atomyze is now recognized as Russia’s first Bitcoin City. The announcement was made by the country’s central bank earlier in February.
Just before the new year, the Bank of Russia disclosed that it would begin accepting crypto investment through foreign firms this year. The top bank’s deputy governor said that the financial institution was ready to begin registering token services.
Atomyze In Russia
Russians can now legally own tokenized wallets.
The legislation to permit licensed companies to issue digital tokens was signed into law in 2020. Firms have been submitting applications to the central bank since then, but Atomyze is the first to satisfy the required criteria and regulations.
Atomyze was carefully assessed by the Bank of Russia and was found to meet the various requirements for registration. The bank officially announced that the platform’s communication system and its technicalities were in line with the amended constitution.
With the formal registration of Atomyze in Russia, residents can legally invest in digital financial assets (DFA). New clients will obtain different kinds of crypto tokens on the platform. The company will also be responsible for carrying out trade and exchange operations without using third parties. All DFA operations will be carried out within the platform for the company to remain compliant with the system rules.
Russia’s central bank intends to expand digital financial assets within the country. The bank has tasked some with crafting progressive proposals that would encourage the regulation of digital assets. The bank plans to tax these digital financial instruments while improving their applicability and attractiveness. The central bank said that these formulated measures would be debated as regulatory consultation reports sometime in the future.
Another firm that applied for a digitization license last year is Sberbank, Russia’s largest retail bank.
Sberbank plans to issue a stablecoin. However, the Bank of Russia is yet to announce whether or not its application has been accepted. Note that it took the regulators over 12 months to approve Atomyze’s application.
Atomyze is a blockchain firm based in Russia. The digital assets company is focused on digitizing different financial assets on its blockchain network. It can also digitize processes in financial institutions through ledger technologies. The DFA is one of the proposed techs.
The platform was launched two years ago and has received funding from various investment firms, including Vladimir Potanin’s Russian conglomerate and the investment firm known as Interros. Potanin is one of the top five richest Russian oligarchs and has a network worth $28 billion. Most of his fortune was generated from his stake in Norilsk Nickel, a nickel and palladium mining and smelting company. He has been on the list of the richest men in Russia since the late ’90s.
The billionaire’s firm, Nornickel, was the only Russian-based company on Forbes’s yearly list of the top 50 blockchain firms in the world.
Interros announced that its global palladium fund is one of the first issuers on the new Atomyze network. The announcement explained that the palladium fund had been used to launch a series of digital exchange-traded assets. These commodities are backed by Norilsk Nickel on stock exchanges around Europe. Two of these exchanges are based in London and Frankfurt.
Interros also wrote that Atomyze is the first crypto digitization firm to receive regulatory approval from the central bank of Russia. The announcement added that the platform ecosystem comprises other non-Russian digitization platforms. Some of these platforms are based in Switzerland and the United Kingdom.
According to Interros’s separate announcement, the Atomyze platform will guarantee Russian digital equality in the global digital financial assets market. The tokenization of Russia’s physical assets will make Russia’s entry into global digital markets smoother. The Russian regulators expect to bring in more foreign investors into the domestic market.
What To Expect
As Atomyze goes to work digitizing physical assets, the Bank of Russia will continue doing so through other submitted applications to add more firms to its legal crypto space.
The bank is still convinced that it is a bad idea to allow local companies to offer digital asset services like crypto investments. Early this year, Tinkoff, a highly-rated local private bank, announced it had acquired a foreign crypto-financial firm. We believe the bank did this to have a shot at launching its own digital-related services soon.