Expobank became the first financial institution in Russia to grant an individual bank loan secured by cryptocurrency. The pledge was Waves tokens.
Entrepreneur Mikhail Uspensky received a loan from Expobank secured by Waves tokens, which were accepted as “other property” in accordance with Article 128 of the Civil Code of the Russian Federation. An escrow mechanism was used in the structuring process.
The founder of LFCS (Legal Support) Yury Borisov accompanied the transaction. He clarified, that the process of depositing tokens was also handled by a notary. According to Tanzila Yandieva, the head of the legal department of Expobank, the deal is “a precedent for both the legal and banking community.”
“I don’t refuse plans to use Waves and I don’t see any point in selling tokens, but they should not be dead weight in my pocket, they should work,” Uspensky explained to Russian newspaper Kommersant.
In July 2020, Russia adopted its first law on digital financial assets. In particular, it defined the digital currency under which cryptocurrencies fall. According to the law, digital currencies are property, they can be inherited, donated, but they must first be declared. The law will come into force in January 2021.