The Central Bank of
Russia (CBR) is exploring new ways to incorporate crypto assets and blockchain
technology into its internal financial system amid a barrage of global
financial sanctions.

Russia’s central bank
on Monday, November 07, 2022, released a report titled “Development of the
Digital Assets Market in Russian Federation” in a Telegram post. The public
consultation report looks at how the technology could be integrated into its
traditional financial system.

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The CBR report
considers how the most sanctioned country might possibly open up its domestic
market to foreign digital assets issuers, and certainly those from the
“friendly countries.”

The report also
focused on other key areas including digital assets regulation, protection of
retail investors, digital property rights concerned with smart contracts and
tokenization, and also the proposals for reformed accounting and taxation
measures, reported Cointelegraph. 

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The CBR report said
that it supports “further development of digital technologies”, concurrently
taking note they do not create “uncontrollable” financial or cybersecurity
risks for consumers of financial services. 

The use of innovative
technologies to create digital assets should also not lead to violations of
Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT)
requirements, which is supported by the CBR’s 33-page report.

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As per the Russian
regulator, short-term regulation should be focused on safeguarding investor
rights, bolstering rules for taking in a new digital asset to circulation,
verifying the issuer’s accreditation, and unfolding all material information to
the investors.

However, the report
lacks the mention of escalated sanctions imposed on Russia and the ruining impact
they have had on Russia’s economy. Also, the report nowhere discusses the
Russian invasion of Ukraine and the ongoing war.

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Another report is
being worked on that focuses on the digital currency of the Central Bank of
Russia, in particular the digital ruble, currently under development. 

Earlier in August this
year, the CBR intended to roll out the digital ruble to all Russia-based banks
in 2024.