Huobi partners with Russia’s VEB Innovation Fund to share notes on crypto regulation
One of the leading cryptocurrency exchanges in the world, Singapore-based Huobi has joined Russia’s VEB Innovation Fund to share notes on cryptocurrency regulation, according to a press release published by VEB Innovation Fund on Wednesday. The Fund plans to use Huobi’s expertise in regulating and securing the circulation of digital assets in different countries.
The Center for Digital Transformations of Vnesheconombank is Russia's first specialized center for disseminating knowledge and supporting breakthrough technologies in the spheres of management and operation of businesses in the private and public space.
The Center of Digital Transformation, where Huobi is now a resident, was created by VEB to promote blockchain and other crypto-related technologies, as its website states.
According to the press release, one of the main aims of this partnership is to forge a relationship with Huobi that would give VEB innovation fund the necessary support for law-making activities in the field of crypto assets.
Speaking about the partnership, VEB Innovations CEO Vladimir Demin said:
"Cooperation with one of the world's largest trading platforms will give the Digital Transformation Center additional competencies in the area of digital assets turnover."
"This expertise will help create a practical regulatory framework in Russia that competes with existing and prospective jurisdictions," he further added.
Andrey Grachev, a Huobi spokesperson in Russia, further reiterated Huobi’s support to the cause. He said, “We're glad it has finally happened. Russian investors had no communication with global trading platforms so far, and Huobi is the first to open its unit in Russia".
Huobi is the first crypto exchange to enter the Russian market. Until now, Russians didn’t have an opportunity to interact with any of the big guns in the crypto trading arena.
Speaking about the future plans, Senior Director of Huobi Global Edward Chen said that the crypto exchange would provide Huobi Cloud services in Russia and would also allow Russian investors to use Huobi over-the-counter (OTC) platform.
Cryptocurrency not to come under the draft law
As BC Focus reported earlier in May, the Russian State Duma’s Committee for Legislative Work announced that it will support the reading of an initiative that will add the basic norms of the digital economy to the Russian Federation Civil Code and lay down the marker as to how citizens could interact with cryptocurrencies. The first draft law "On Digital Financial Assets" appeared in late 2017 and was submitted to the State Duma in January 2018.
But according to reports by the local media outlet “Izvestia” on Wednesday, the revised version of the draft prepared for the second reading does not contain the concept of "cryptocurrency", and mining is defined only as the release of tokens to attract investment in capital. In the previous version of the document, mining meant the extraction of cryptocurrency, and the cryptocurrencies themselves are one of the types of digital assets.
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