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Sberbank To Conduct First Digital Asset Transaction On Own Platform

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Sberbank To Conduct First Digital Asset Transaction On Own Platform

Russia’s largest bank, Sberbank, is going to carry out the first transfer of digital assets on its own dedicated platform within a month, a top executive revealed this week. The announcement comes after earlier this year, the bank was authorized to issue digital financial assets.

Sberbank Prepares for Deal With Digital Financial Assets on Proprietary Platform

Russian majority state-owned bank Sberbank (Sber) will perform the first transaction with digital financial assets (DFAs) on a platform developed by the institution within a month, Tass reported. The news agency quoted Anatoly Popov, deputy chairman of the Management Board of the banking and financial services company.

Speaking on the sidelines of the St. Petersburg International Economic Forum, the high-ranking executive reminded that Sberbank, which accounts for about a third of all bank assets in Russia, was added to the Central Bank of Russia’s register of information system operators permitted to issue DFAs this spring.

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‘Digital financial assets’ is the current term in Russian law describing cryptocurrencies and other digital assets. Additional legislation is on the way, with a bill “On Digital Currency,” proposed by the Ministry of Finance to comprehensively regulate the country’s crypto market, likely to be adopted during the fall session of the State Dima, the lower house of parliament.

“We are watching the development of new technologies, including in the field of distributed ledgers. We are studying how blockchain technologies are developing,” Popov commented. “Currently, there are many projects using them, and in Sber, of course, too.”

Sberbank’s deputy chairman also noted that the bank’s digital asset platform has already passed acceptance tests. A press release published in March detailed that DFAs will be issued and circulated through the platform which has been built with blockchain technologies.

Other companies will be allowed to use it to issue their own digital assets to attract investments. They will also be able to make transactions with DFAs under applicable regulations in the Russian Federation.

For now, the law “On Digital Financial Assets,” which went into force in January of 2021, is the main piece of legislation regulating cryptocurrencies and tokens in Russia. While it introduced rules to govern activities such as the issuance of digital coins and fundraising through tokens, key operations with cryptocurrencies like mining and trading are yet to be regulated.

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Bank, banks, Blockchain, Coins, Crypto, Cryptocurrencies, Cryptocurrency, Deal, DFAs, Digital Assets, digital financial assets, platform, Regulation, Regulations, Russia, russian, Sberbank, Tokens, Transaction

Do you expect other Russian banks to start working with digital assets? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, Mino Surkala

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Belgian Banking Group KBC Creates Blockchain-Based Coin

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Belgian Banking Group KBC Creates Blockchain-Based Coin

KBC Group, a major European banking and insurance institution headquartered in Belgium, has launched a token based on a blockchain platform. Its customers will be able to acquire the new proprietary coins and use them through their KBC wallet and mobile app.

KBC Issues Digital Coin for Clients and Partners

KBC, the Brussels-based financial group with extensive presence in Central and Eastern Europe, has announced its own crypto called ‘Kate Coin.’ The bank said it’s preparing a large-scale test of the token, with the participation of thousands of employees who will be able to spend it at a festival in Belgium this week, and it will eventually roll it out throughout the group.

The coin comes a year and a half after the launch of Kate, KBC’s personal digital assistant. In a press release, the company noted that a whole new economy is now developing on the basis of technologies such as web 3.0, cryptocurrencies and non-fungible tokens (NFTs). With its latest initiative, KBC wants to enter this new world and confirm its position as a leader in digital banking insurance.

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As a bank-insurer, KBC is focusing on private clients and small to medium-sized enterprises in Belgium, Bulgaria, Hungary, Slovakia, and the Czech Republic. Its customers will be able to acquire Kate coins and use them via their digital wallets and mobile accounts.

The token will initially be available in KBC’s ‘closed loop’ banking and insurance environment. Eventually, it will be introduced into a wider ecosystem, which includes some KBC enterprise customers, third parties and partners that are offering services through the bank’s mobile platform to 1.8 million users.

“Powered by the digital assistant Kate, the Kate Coin will proactively make life easier for our customers throughout the KBC group, today and in the future. The combination of the digital assistant Kate and the Kate Coin will enable KBC customers to save time and money,” KBC Group said in a statement published Thursday.

This isn’t the first time a large banking corporation creates its own digital currency. In 2020, the global investment bank and financial services company JPMorgan announced its own crypto, JPM Coin, also based on blockchain technology and enabling payments between institutional clients.

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Bank, Banking, Belgian, belgium, Central Europe, COIN, Crypto, Cryptocurrencies, Cryptocurrency, Eastern Europe, Europe, financial company, Insurance, insurer, Kate, Kate coin, KBC, KBC Group, Token

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Do you expect other major financial companies to issue their own digital coins? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, Lithuaniakid

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bank Of Kyrgyzstan Issues Warning About Cryptocurrencies, Crypto Payments

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Bank Of Kyrgyzstan Issues Warning About Cryptocurrencies, Crypto Payments

Amid the growing popularity of cryptocurrencies in Kyrgyzstan, the country’s central bank has reminded citizens about the risks associated with the digital assets. The monetary authority also warned that crypto payments are illegal in the Kyrgyz Republic.

National Bank of Kyrgyzstan Urges Caution With Cryptocurrency

Cryptocurrencies and other virtual assets are increasingly spreading in Kyrgyzstan, the nation’s central bank recently noted. The regulator reminded that using them to buy or sell goods and services is still against the law, with the Kyrgyzstani som remaining the only legal tender in the country.

Quoted by local media, the monetary authority also issued a warning regarding the risks linked to decentralized digital currencies. “No one, as a rule, is liable for cryptocurrency. It does not have financial support. It has no real value due to the fact that it is not tied to any currency or other asset,” it said.

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This creates high risks of exchange rate volatility and loss of value, the National Bank of Kyrgyzstan (NBK) elaborated. It also pointed to the risks with settlements in cryptocurrency, stemming from its features and the absence of a “controlling central body.” The NBK further stated:

Therefore, we recommend citizens to be prudent and refrain from using cryptocurrency for payments and settlements. Users assume all possible risks and negative consequences when making settlements using cryptocurrency and virtual assets.

The authority’s statement comes after the central bank of neighboring Kazakhstan announced last week it’s examining the crypto market while emphasizing it’s too early to talk about legalization of cryptocurrencies like bitcoin.

Central Asia, where the two countries are situated, attracted crypto businesses last year, especially miners after China started cracking down on the industry in May, 2021. Both nations have since tried to limit mining by shutting down illegal crypto farms and raising electricity rates for authorized mining enterprises. Miners have been blamed for power shortages and damage to the electricity networks.

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Bank, central asia, Central Bank, Crypto, Cryptocurrencies, Cryptocurrency, Kazakhstan, Kyrgyzstan, legal tender, means of payment, national bank, Payments, Settlements, Warning

Do you expect the National Bank of Kyrgyzstan to change its policy towards cryptocurrencies in the future? Tell us in the comments section below.

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Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Major Japanese Bank Sumitomo Mitsui Trust To Launch Cryptocurrency Custody Business

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Major Japanese Bank Sumitomo Mitsui Trust To Launch Cryptocurrency Custody Business

Sumitomo Mitsui Trust, one of the major banking institutions in Japan, will reportedly enter the cryptocurrency custody business. The company is entering a partnership with Bitbank, a Tokyo-based cryptocurrency exchange, to launch a new company that will focus on offering institutional-grade custody for digital assets and NFTs.

Sumitomo Mitsui Trust Bank to Enter Digital Custody Business

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Sumitomo Mitsui Trust Bank, a major financial institution in Japan, has decided to enter the cryptocurrency custody business. The company announced that it will launch a digital assets custody company in partnership with Bitbank, a Tokyo-based cryptocurrency exchange. The company, which will be named Japan Digital Asset Trust — and owned 15% by Sumitomo Mitsui Trust and 85% by Bitbank — will focus on providing custody of crypto and NFTs to institutional customers.

According to local media, the objective behind the move is to capture the local institutional market that still sees the issue of custody as a deterrent to investing in these new products. Sumitomo Mitsui Trust believes that investors will be more comfortable holding digital assets if the custody is provided by recognized institutions in the financial world instead of crypto exchanges, which often don’t face the same scrutiny from the established regulatory bodies.

The capital of the company is reportedly 300 million yen ($2.3 million) at its start, with the two companies expecting other investors to dive into this proposal to reach 10 billion yen ($78 million).

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Operations and Competition

The new company aims to start its operation this year, as others competitors are also rushing to bring these services to the Japanese market. Nomura and Crypto Garage are also launching a joint venture to offer similar services to their customers.

However, the Japan Digital Asset Trust will also be offering a different product. According to reports, the new company has plans to issue a yen-pegged stablecoin, supported by regulations allowing banks to launch this kind of product. There have been no further details on this from any of the players in the partnership.

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While the company is entering the crypto sector during a downturn in the market, with bitcoin and other cryptocurrencies losing a large part of their value, the rise of the metaverse and blockchain gaming could power the interest in cryptocurrency during this period. Japan Digital Asset Trust is said to expect demand for stablecoins, which usually don’t suffer the same volatility problems that other cryptocurrencies do, to increase as metaverse worlds rise to prominence.

What do you think about the new custody company that will be launched by Sumitomo Mitsui Trust? Tell us in the comments section below.

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Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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