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Russia Launched its Regulatory Sandbox to Boost Blockchain Technology Adoption

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Feb 7, 2021

It was revealed just last month that Russia has introduced a regulatory sandbox for blockchain technology. The regulatory sandbox has been introduced by the Russian regulators so the process of blockchain in the country can be expedited.

In the past couple of years, Russia has turned out to be one of the strictest yet welcoming countries for the crypto-blockchain industry. The country has even granted cryptocurrencies a legal status back in July of 2020 when it passed a law for cryptocurrencies.

The new law passed by the Russian Government by signed by the President of Russia “Vladimir Putin”. It was announced that the new law around cryptocurrencies was going to be implemented on the cryptocurrencies with the start of the year 2021.

The Russian Government stayed fair and true to their announcement and the law against cryptocurrencies was implemented on January 1, 2021.

On top of that, the country is also working to introduce its own central bank digital currency. It has been revealed that the citizens of Russia will soon be processing transactions through digital-ruble.

As this is a new era and a new phase for the Russian Government as well as the cryptocurrency sector in the country, many challenges are bound to pop-up. One of the major challenges that both parties are going to face is related to the implementation of the conditions and rules on the crypto-assets.

Before any cryptocurrency firm comes into being, it needs to test all its tools and products it is going to offer to the users. Most importantly, it needs to ensure that anything offered to the users or a particular region is permitted by the regulators of that zone.

When it comes to the regulators, it is very important that the policies, rules, regulations, and conditions set by them are fair and flexible enough for the survival of the industry.

All of the above factors become a huge problem if they are tested in real-time markets. Therefore, it is extremely important that an artificial environment is created where the regulators and crypto-firms get to interact with each other. The platform is essential for both entities as it does not pose any risks or legislation to the regulatory and crypto framework.

Therefore, the Russian Government has dealt with this problem exactly the way it was supposed to be handled. From January 28, 2021, the Russian Government has implemented law No. 258. According to the new law, any software being introduced in the Russian market will have to be tested.

This will help the Russian Government as well as the particular company to assess the usefulness and scalability of the software. If the collected results are satisfactory and up to the market, the Software will then be launched into the market.

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