The Russian government may soon allow the creation of regulatory sandboxes for companies working on cutting-edge technologies like artificial intelligence and distributed ledgers.
Introduced in a new bill on March 17 by Prime Minister Mikhail Mishustin, the plan does not directly mention blockchain or cryptocurrencies, but an explanatory note mentions distributed ledger as one of the technologies that could be explored in the new “experimental regulatory regimes.”
Such regimes can be established to live-test the new technologies in medicine, transporation, distant learning, financial markets, online commerce and other sectors. The bill gives Russia’s regulators scope to deal with novel tech in a more flexible way, the document says. It’s also suggested that the country’s regions would be able to set up their own local sandboxes.
The Bank of Russia, the central bank, will be supervising the sandboxes related to fintech. Representatives of the Economic Development Ministry, which initiated the bill, told the Russian newspaper Izvestia that fintech projects operating within sandboxes would be subject to lighter regulation regarding cash reserves, financial reporting and foreign currency controls.
Olga Shepeleva, a senior expert at the Center for Strategic Research, a Moscow-based think tank that helped draft the bill, told CoinDesk that the law should have already been passed as a part of the government’s program on developing the digital economy in Russia. However, there were concerns that such a law would excessively skew the power balance in favor of the executive branch.
“The main idea is that the government can choose to make a temporary exceptions from laws and regulations” for the sandboxes, Shepeleva said.
The Bank of Russia has already been running a regulatory sandbox for fintech projects, and has even reported successfully testing a blockchain-based tokenization pilot by the mining and smelting company Nornickel.