EU, South Korea explore tokenization while Russia sets crypto limits

Homepage > News > Finance > EU, South Korea explore tokenization while Russia sets crypto limits TL;DR: As digital asset experimentation continues at a pace in jurisdictions across the globe, it’s becoming increasingly clear that there is no single approach emerging among regulators. The European Central Bank (ECB) is preparing to invest its own funds in tokenized securities while building infrastructure to settle them in central bank money, just as South Korea announces tests of blockchain-based deposit tokens for government payments. Meanwhile, in Russia, where a new digital asset regime is taking effect, the central bank is proposing new capital-based limits on banks’ exposure to cryptocurrencies and foreign digital instruments. Key Takeaways: The ECB plans to invest a portion of its own funds in euro-denominated tokenized securities. South Korea will test blockchain-based deposit tokens for government ministry operating expenses. South Korea’s deposit-token pilot will use QR payments and include banks such as Shinhan, Woori and Hana Bank. The Bank of Russia proposed limiting banks’ crypto and foreign digital-asset exposure to 1% of capital. Russia’s proposed rules woul...