CryptosHeadlines.com - The Leading Crypto Research Network
Russia is figuring out how to make decentralized financial organizations, often called DAOs, legal and regulated. They want to do this to increase the amount of money in their local Digital Financial Assets (DFA) market.
Ad. Get $50 USDT Reward From CryptosHeadlines. Click Here To Join
Ivan Chebeskov, who is the Director of the Department of Financial Policy at the Ministry of Finance, talked about this at the Crypto Summit 2023.
Russia Legalizes DeFi DAOs
Amid international sanctions affecting Russia, the country is looking to legalize a new kind of finance called DAO (Decentralized Autonomous Organization). This move aims to bring excitement to the financial markets while sticking to the principles of decentralization.
A DeFi DAO is a Decentralized Autonomous Organization that uses blockchain and smart contracts to manage various financial transactions in a decentralized way. These DeFi DAOs are expected to revitalize Russian markets by facilitating activities like lending, trading, storing digital assets, staking, and more.
The Russian government is making this move to boost market liquidity in response to recent sanctions. Ivan Chebeskov, speaking at a summit, expressed the need for a connection between Digital Financial Assets (DFAs) and the decentralized finance world to tap into existing liquidity.
Since the DFAs bill was signed into law by President Vladimir Putin in 2020, Russia has been working to attract investors. Currently, only ten platforms have been registered through the Bank of Russia.
Thereâs hope that the DFA market will grow, and the potential legalization of DeFi DAOs could speed up this process. Chebeskov believes that to actively develop DFAs and decentralized finance, legalizing DAOs is essential.
Interestingly, unlike some countries that require new definitions for DAOs before legalization, Russia doesnât need that. Chebeskov hopes that after legalization, DAOs will perform well in the country.
Russiaâs Creative Ways to Evade Sanctions
Since the start of the turbulent Russian invasion of Ukraine, the country has faced sanctions from major economies, primarily led by the US. Despite the criticism, Russia and its investors have come up with creative ways to avoid these sanctions.
In the past year, there were reports that local investors might use cryptocurrency to evade sanctions. Then, in 2022, there were rumors that Russia might consider legalizing cryptocurrency for international trade.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
