Russian Duma receives 18 applications for blockchain research

Maria Nikolova

A contract will be signed with the Financial University under the Government of the Russian Federation, which got the top rank among all applicants.

A followup to FinanceFeeds’ earlier report about the Russian parliament allocating RUB 2.5 million for blockhain, cryptocurrencies, ICO research…

On Wednesday, October 18, 2017, the Russian State Duma published some details about the applicants. A total of 18 applications were received with the funding required for the projects starting from a meager RUB 1. That was the offer made by a Russian law firm.

The applicant that got the highest score and will get a contract with the Russian Parliament is the Financial University under the Government of the Russian Federation. Its project requires funding of approximately RUB 1.88 million.

When the Duma invited the applications about a month ago, it noted the rapid evolution of the new financial technologies and emphasized the need to adapt them to the Russian market in a way that protects them from being destroyed by rules that are too harsh. However, the anonymity that goes along with many of the new technologies brings risks, such as the ability to finance terrorist activities, and the market has to be safeguarded from them.

In September this year, the Bank of Russia said it was monitoring the cryptocurrency markets and is exploring ways to regulate the segment. The “Megaregulator” reiterated its critical stance about the use of cryptocurrencies and ICOs, stressing the risks they bear and that investors in cryptocurrencies are not protected, as the industry is not regulated at this point.

Earlier this month, Sergey Shvetsov, First Deputy Governor of the Bank of Russia, said that the central bank and the prosecutors are working together to close the foreign websites that offer Russian residents to buy cryptocurrencies.

Mr Shvetsov added that all derivative instruments related to cryptocurrencies are seen as negative phenomena by the “Megaregulator”. The central bank is not supporting these instruments and will implement measures to limit all operations with them for the regulated part of the Russian market. He reiterated that these instruments bring very high risks for the Russian citizens and businesses. Moreover, he stresses, Bitcoin has become a means for getting artificially high returns for a very short period of time, something that is characteristic of financial pyramids.

Read this next

Inside View

Broadridge report finds 27% of firms’ overall IT budget goes to digital transformation

“A new chapter in digital transformation is emerging. In our work with clients across the financial services industry we see leading firms are already reaping the benefits from digitalization and the use of technologies such as AI and blockchain/DLT, as they adapt to economic headwinds and new competitive dynamics”

Executive Moves

Ripple announces Monica Long as President

“I’m incredibly honored to take on the role of President at Ripple as we expand deeper into crypto-enabled services like liquidity, settlement and custody.”

Executive Moves

Arabesque AI appoints Carolina Minio Paluello as CEO

“Arabesque AI is uniquely positioned to service the asset management industry’s need to meet the growing market demand for hyper customised portfolios.”

Industry News

SEC Commissioner Mark T. Uyeda says standardized ESG measures are doomed to fail

“Because ESG ratings may be divorced from matters of financial materiality, they can reflect a particular political or social agenda.”

Industry News

Worldline launches digital payments suite in India

“Our low-cost innovative offering SoftPOS will empower SMBs in a big way to accept digital payments affordably.”


cTrader Web 4.5 Presents Guest Mode, Multiple Charting and Copy Improvements

Spotware has announced the release of its cTrader Web version 4.5, which comes with a whole range of features and improvements for all cTrader users.


SteelEye suggests integrated surveillance as Morgan Stanley fines employees over WhatsApp

“The use of integrated surveillance means firms can avoid unwanted regulatory attention by enabling them to self-report and self-remedy more efficiently when malpractice is flagged.”

Industry News

ASIC bans Gregory William Finerty for unlicensed FX algo trading bot

Bradford AI leased an algorithmic trading program known as ‘Robot 1’ to trade on the FX market, using an Australia-based over the counter contracts for difference (CFD) broker.


With the recent changes to St Vincent licensing, what will the future trends be for licensing in 2023?

New St. Vincent and the Grenadines regulations came as somewhat of a shock for those brokerages that are only regulated in SVG