Russia’s ExpoBank Makes First Cryptocurrency Asset Backed Loan
Russia’s Expobank has become the first lender in the country to issue a loan secured by cryptocurrency tokens, saying that it issued an individual loan to a Moscow businessman earlier this week, with the customer putting up Waves crypto tokens as collateral for the agreement.
The value of the loan was not disclosed. Expobank bank consulted a number of lawyers and crypto experts on the deal beforehand, resulting in the Waves tokens being defined as “other property” and placed in an escrow account for the purposes of securing the loan.
Tanzila Yandieva, head of Expobank’s legal department said the deal was “precedent-setting for both the banking and legal communities.”
Russia passed its first law on cryptocurrency use earlier this summer. The digital currency industry saw its provisions as overly restrictive, as the rules will ban Russians from using cryptocurrencies as a form of payment when they come into force next year. Businesses will also be barred from advertising crypto payment options.
Expobank believes the use of the crypto tokens as collateral for a loan, defined as “property”, is allowed under the new guidelines.
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