NAUFOR Launches Self-Regulatory Council for Digital Assets

The National Association of Stock Market Participants (NAUFOR), Russia’s biggest securities and banking association, has announced the creation of a new council for the regulation and development of the digital asset market. The council will consist of experts from various fields, such as finance, law, technology, and academia, and will aim to foster dialogue and cooperation among different stakeholders in the emerging sector.

What are digital assets and why do they matter?

Digital assets are a broad term that encompasses various types of digital representations of value, such as cryptocurrencies, tokens, digital securities, and non-fungible tokens (NFTs). They are often based on blockchain technology, which enables decentralized, transparent, and secure transactions and record-keeping. Digital assets have attracted increasing attention and investment in recent years, as they offer new opportunities and challenges for the financial industry and society at large.

According to NAUFOR, the digital asset market in Russia is gradually developing and requires regulatory decisions that contribute to its growth and integration with the traditional financial market. The association stated that the new council will discuss issues of regulation, issuance, circulation, and interaction of digital assets, as well as provide recommendations and proposals to the relevant authorities and market participants.

Who are the members and leaders of the council?

The council will be chaired by Ekaterina Andreeva, the first vice president of NAUFOR. Andreeva has extensive experience in the securities market and has been involved in several initiatives related to digital assets, such as the development of the Russian Security Token Offering (STO) platform and the participation in the Bank of Russia’s digital ruble pilot project.

The council will also include representatives from NAUFOR’s member organizations, such as Sberbank, VTB, Ingosstrakh-Investments Asset Management, and others. Additionally, the council will invite experts from other fields, such as academia, law, technology, and civil society, to join its discussions and activities. Andreeva said that the council is open to suggestions and cooperation from anyone who is interested in the development of the digital asset market in Russia.

What are the goals and plans of the council?

The council’s main goal is to promote the development of the digital asset market in Russia and to ensure its compatibility and compliance with the existing legal and regulatory framework. The council will also seek to establish best practices and standards for the issuance and circulation of digital assets, as well as to educate and inform the public and the authorities about the benefits and risks of digital assets.

The council plans to hold regular meetings and events, as well as to publish reports and recommendations on various topics related to digital assets. The council will also cooperate with other similar initiatives and organizations, both domestically and internationally, to exchange information and experience and to harmonize the approaches and regulations for the digital asset market.

The council’s launch comes at a time when Russia is witnessing a growing interest and activity in the digital asset sector, as well as a changing regulatory landscape. In January 2024, the law on digital financial assets came into force, which defines the legal status and rules for the issuance and circulation of digital assets in Russia. Moreover, the Bank of Russia is conducting a pilot project for the digital ruble, which is expected to be launched in 2024. The digital ruble is a CBDC, or a central bank digital currency, which is a digital form of the national currency issued and controlled by the central bank.

The council hopes to contribute to the development and innovation of the digital asset market in Russia, as well as to protect the interests and rights of the investors and users of digital assets.