CEO of a crypto company on government Regulation
The blockchain economy is only 13 years old. Only the last few of them have begun to try to regulate the chaotic development of the industry, while huge business processes in the new alternative crypto reality have long been configured and work almost without interruption.
Not to go where the requirements of the regulator begin and stop developing? Go to the “gray zone” and wait for the reckoning? Redo everything, but actively develop within the framework of the law? Such questions are asked by large companies and business ecosystems based on blockchain infrastructure.
Anatoly Berdnikov, CEO of the Decimal public blockchain, talks about how legal practice has been developing for three years in accordance with the CFA law, draft laws on digital currency and what new decisions have to be made.
How to regulate decentralized blockchains. Pro and cons?
Blockchain and cryptocurrencies are not just a game, and when creating an international IT company over the past seven years, I knew for sure that sooner or later blockchain technology and the economy built on it would be recognized by traditional systems. How exactly? To this day, no one has an exact answer, but one thing is obvious — only productive cooperation will allow both the regulator and business to develop.
The ideas of decentralization and anonymity have been replaced by the idea of applicability, which is much more interesting and creative for me (as an entrepreneur). Over the past three years, I have been actively engaged in advising companies that have been working on the creation and registration of an investment platform for the issuance of utilitarian digital rights and an operator platform for the issuance and exchange of digital financial assets.
Decimal — a solution for the interaction of companies
At the time of the adoption of the CFA law, I had already created and launched a public blockchain and a constructor of all types of Decimal tokens, whose task is to give people a simple tool to issue their own cryptocurrency in order to use it in their business. This is already applicable and is actively used in small businesses by individuals and the self-employed: tokenized loyalty programs, NFT content, various products based on smart contracts and much more are being created. But we aim to work with both large companies and states.
Together with an IT company licensed by the FSB (to work with cryptographic protection tools) and FSTEC (to develop and manufacture confidential information protection tools), we have started developing Decimal Russia software based on the Decimal public blockchain network. This software is in the form of a smartchain and will be provided as a technical solution for business in the Russian Federation, since the company that developed it has the necessary licenses.
Today, among our clients there is a large company — a potential operator of information systems for the issuance of CFA, which will use the Decimal Russia network to issue digital financial assets. In addition, we advise a company that is an investment platform licensed by Centralbank and uses the Decimal Russia network to issue utilitarian digital rights.
In 2022, I plan to complete legal work on building an architecture of interaction between companies using the Decimal blockchain and sit down for a scientific paper “The role and impact of cryptocurrencies and blockchain technologies on the financial sector of the Russian economy”.
The role of the Decimal Blockchain for the CFA Release Operator
The Decimal blockchain plays the role of an accounting system in the CFA operator’s information system. The CFA is issued within the framework of the information system by making an entry in the blockchain.
The obligations laid down by the issuer in the CFA must be fulfilled at the request of the holder; the CFA is handled within the operator’s information system or through the CFA exchange operator. At the same time, all relevant transaction records are reflected in the blockchain.
The Decimal blockchain performs a similar role of the accounting system for the investment platform. The investor finances projects with his capital, and as a confirmation of this financing receives the corresponding tokens, or utilitarian digital rights, to his wallet. Tokens (SCP) are issued within the framework of the investment platform. Depending on the conditions of the projects that attract investments, tokens are subject to reverse exchange on the stipulated conditions. If an investor does not want to exchange tokens for services, a thing or a right, then tokens continue to be turned around on the investment platform, and records of all transactions with the SCP are reflected in the blockchain.
Development prospects: blockchain and the state
We are on the threshold of a new economy in which blockchain has already found a place and is beginning to develop its legitimate territory. In the context of the crisis, sanctions measures and geopolitical events, blockchain technologies were evaluated from new sides, and my team and I were moving in the right direction. The result of three years of legal practice in the direction of CFA and UCP will be an ecosystem of several third-party licensed companies united by the Decimal blockchain.
Any corporation or even a state will be able to create its own networks based on Decimal and prescribe conditions suitable for its work in them, while using compatibility with all networks and tokens created on Decimal. Instead of writing a blockchain from scratch, you can use a ready-made Decimal solution and our practical experience. Potentially, each new network will not have its own issue and will buy and use a DEL coin for functioning.
