Huobi Partners With Major Russian Bank to Provide Legal Services to Crypto Organizations

  • Singapore-based digital asset exchange Huobi has partnered with Russian government-controlled development bank, Vnesheconombank (VEB).
  • The partnership involves cooperation regarding Russia-based crypto and blockchain-related initiatives.

Singapore-based digital asset exchange Huobi, which is one of the world’s largest crypto trading platforms by volume, has partnered with Russian government-controlled development bank Vnesheconombank (VEB) - in order to help Russia adopt blockchain technology.

As CryptoGlobe reported last month, Huobi had announced that it would be opening new offices in Russia and launching a company website in the Russian language. Officially launched on November 12, the new Huobi branch is open 24 hours a day and provides online customer support.

Setting Up "Mining Hotels", Training & Education Centers

Earlier this month, Huobi’s Russia-based digital currency exchange went live. As covered, Huobi’s new support center has been set up specifically to provide guidance to Russian firms planning to enter the crypto industry. In addition to offering a startup incubator and exchange service in Russia, Huobi’s partnership with Vnesheconombank will reportedly involve working cooperatively on blockchain education and training initiatives.

Huobi is also planning to establish crypto “mining hotels” and a Huobi Legal Lab, which will provide legal assistance to Russian firms looking to launch new crypto and blockchain-related businesses. Moreover, Huobi intends to work closely with VEB on its larger Center for Digital Transformations initiative, which involves helping Russian companies in other related industries of the digital economy.

Huobi’s Legal Lab will also aim to provide legal services in Russia’s courts to crypto-related organizations. Additionally, the lab’s experts will be drafting new legislation for Russia’s nascent blockchain industry in order to help local crypto market participants offer services that comply with the appropriate regulations.

Working Cooperatively With Local Academic Institutions

Notably, Huobi and Vnesheconombank will be receiving guidance and support from the Moscow State Institute of International Relations (MGIMO), one of the most prestigious academic institutions in Russia. Elina Sidorenko, the head of Russia’s working group of cryptocurrency risk assessment, has been appointed the head of Huobi’s Legal Lab.

Sidorenko, who is a faculty member at MGIMO, explained that the legal lab has been set up to ensure that the nation’s cryptoasset industry participants do not violate local legislation. Huobi’s legal experts will also make sure that Russian crypto firms comply with international laws. Commenting on the importance of developing proper regulatory guidelines, Sidorenko stated: 

In a situation when the regulatory framework is developing more slowly than the digital industry itself, legal support is vital for the business.

According to local reports, Russian crypto firms are finding it challenging to comply with the relevant laws as the nation’s existing legal framework does not clearly specify how to offer crypto-related services in a manner that does not violate local or international regulatory guidelines.

Rwanda’s Central Bank Reportedly Considering Launcing Its Own Cryptocurrency

Michael LaVere
  • The National Bank of Rwanda is considering developing a digital currency. 
  • Planning to use Canada, Singapore and the Netherlands as model countries. 

The National Bank of Rwanda (NBR) is reportedly considering the development and launch of a state-backed cryptocurrency. 

Rwandan Digital Currency

According to a report by Bloomberg published on Aug. 22, the central bank is looking into the feasibility of launching a cryptocurrency that would make processing transactions more efficient in addition to boosting economic growth. 

The report claims that the NBR intends to learn from the experience of Canada, Singapore and the Netherlands--other countries that have tested the use of blockchain technology backing a central bank digital currency. 

Financial Stability Director-General Peace Masozera Uwase told Bloomberg in an interview, 

There are still concerns about how exactly you convert the entire currency into digital form, how to distribute that and how fast can you process those transactions. Challenges come in, if technology is down how do you deal with such issues? “We will join in once we are ready.

Rwanda’s consideration of a digital currency comes just weeks after it was reported that China’s central bank digital currency is set for launch, despite the country’s negative stance towards bitcoin and cryptoassets. 

However, the global attitude of central banks is gradually shifting towards the issuance of a digital currency, as existing financial systems seek to find ways to keep up with the fintech revolution being generated through crypto and blockchain.