Russian bank issues first crypto-backed loan via Waves (WAVES)
- Russian Expobank recently issued its first-ever crypto-backed loan.
- The loan was issued to a local entrepreneur, who used Waves token as collateral.
- Uncertainty regarding crypto is still strong in Russia, and many speculate about the legality of the move.
Russian regulators have been working hard recently to come up with adequate regulations for the crypto industry. However, their efforts have yet to be included in the nation’s law.
Despite this, one of the country’s banks has decided to go ahead and issue the first-ever crypto-backed loan, despite the still on-going lack of regulatory clarity.
Russian bank issues the country’s first crypto loan
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According to a recent report by a local news agency, Russian Expobank recently issued the credit through issuing a bank loan powered by a crypto project Waves (WAVES). In other words, the loan relies on Waves tokens as collateral.
The loan was issued to an individual, a local entrepreneur, Mikhail Uspensky. The deal took place earlier this week, and since then, Wspensky stated that he is committed to Waves coins.
However, despite this, Waves price saw a drop in the last several days, after briefly breaching a resistance level at $4.50. At the time of writing, the coin’s price sits at $4.03, after a 5.55% drop in the last 24 hours.
Can cryptocurrency be used as collateral?
The news of Waves being used as collateral was also confirmed by the project’s founder and CEO, Alexander Ivanov.
At this time, it remains unknown whether the loan will lead to recognizing this type of loan by Russian law. Some legal experts believe it to be a possibility, while others remain uncertain.
A lawyer at Vegas Lex, Kirill Nikitin, stated that there is still uncertainty regarding what crypto transfers are legal. This comes as a consequence of a recent crypto law that allows the coins, but prohibits crypto payments.
On the other hand, there are also those who believe that Waves is a non-payment token, and as such, it should not be restricted by the local laws.
However, Russia is expected to see the passing of yet another crypto bill later this year, which will, hopefully, bring more clarity.