MinFin preparing legalization of decentralized financial organizations - Chebeskov
MOSCOW. Sept 12 (Interfax) - The Finance Ministry is considering the possibility of legalizing the operations of decentralized financial organizations (DeFi DAOs) in Russia in order for the liquidity that is currently available in this sector to enter the market of Russian digital financial assets (DFAs), Ivan Chebeskov, Director of the Finance Ministry's Financial Policy Department, said during a panel discussion at Crypto Summit 2023.
"We are actively advocating for the development of DFAs, but we understand that DFAs will not "take flight" on their own, we need a link between DFAs and the decentralized world of finance in order to use the liquidity that already exists in decentralized finance, the liquidity in crypto-assets that citizens already have, so that they can invest through these assets in DFAs under Russian law, to invest in the Russian economy, in Russian assets," he said.
The head of the department noted that DFAs are still a disparate product, and as of early September, there are 10 platforms in the Central Bank's register, but the market will change - either towards reduction of platforms, or towards their work through a single aggregator which has access to decentralized finance.
"Most likely, the number should somehow either shrink or lead to the point where there will be a single some kind of aggregator of these platforms, which ideally would also have access to decentralized finance and crypto assets so that these assets can be used to invest in CFAs. Then, in my opinion, this market has huge potential and huge opportunities for investment, including in our economy," Chebeskov believes.
"Most likely, the number should somehow either decrease or lead to a single aggregator of these platforms, which ideally would also have access to decentralized finance and crypto-assets so that these assets can be used for investments in DFAs. Then, in my opinion, this market has huge potential and huge opportunities for investment, including in our economy," Chebeskov said.
The department head said that the Finance Ministry is trying to look at the issue in a comprehensive way: "We understand that in order to more actively develop both DFA and decentralized finance in general, it is necessary to legalize DAO. I hope that in the near future we will also come up with such legislative initiatives," he said.
There is no need to introduce a new definition into legislation, and it should be enough to classify LLCs already created as digital DAOs provided they meet certain criteria, Chebeskov said. "Those jurisdictions that make such decisions become a home for such decentralized organizations," he said.
DeFi DAO is a decentralized autonomous organization that operates in the field of DeFi (decentralized finance). It is based on blockchain technology and uses smart contracts to automate and manage financial transactions without the need for a centralized intermediary. It is a digital form of organization that allows participants to make decisions and manage a project collectively using the principles of decentralization and voting.
DeFi DAO can offer various decentralized finance services and products such as lending, exchanging and storing digital assets, staking and more. DAO members can have the opportunity to vote on important issues, participate in the development of new products, and receive rewards from investing.