MOSCOW, October 1. /Offset. TASS Veronica Ichetkin/. Digital platform “Sunrise” created by NP RTS and development Fund of the Far East (FRD), expected in January 2018 to start trading cryptocurrency Coin D1, secured the far Eastern diamonds. The agreement was reached with the Singapore company Diamundi Pte Ltd – Creator of the cryptocurrency.
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To do this, within a month it is planned to prepare a regulatory framework for the launch of a limited turnover of cryptoclub on “Sunrise” in test mode, but in carrying out actual transactions. As reported TASS, the head of FRD Alex Chekunov, it will design the group that will include representatives of the Ministry of Finance, Central Bank, VEB, FRD, NP RTS and the market participants, regulatory and law enforcement agencies .
According Diamundi Pte, the total nominal value of all Coin D1, which until the end of 2018 will be issued into circulation, will be about $1 billion. D1 Coin is a crypto – currency based on blockchain-Ethereum-backed diamond investment grade. Each token Coin D1 provided 1/1000 CT diamond reference and is available for every diamond in the quantity calculated by the neural network – D1 Matrix on the basis of several characteristics and analysis of the market, the company explained. The owner of a certain number D1 Coin can exchange them for the selected diamond online.
To ensure D1 Coin company uses certified diamonds cutters cooperating with ALROSA, including the diamond cutting and polishing its structure – “Brillianty ALROSA”. Precious stones will be stored in special safes in Singapore and Switzerland, they will be insured. Available online data on the total number of issued D1 and diamonds deposited will be checked by international auditors.
The location of the “diamond” of the cryptocurrency, according to Alexei Chekunkov will be made in tranches. “Not supposed to issue unsecured tokens, they will be produced as the content of the safes in Singapore and Switzerland diamonds. The company Diamundi Pte assesses the amount of available raw materials on the horizon of one year in the amount of about $1 billion In this program will participate the largest the diamond “ALROSA”, – he explained, adding that the first tranche, the auction which will begin in January 2018, is projected to total $100 million, “but the company oversubscription to the extent of about $400 million.”
The Director of “ALROSA Diamonds” Paul Pinigin confirmed TASS that the company will supply the Singapore side diamonds on this project, but refused to name the planned volumes of deliveries. “We are one of the suppliers of diamonds under this project, and we are ready to supply the desired volume. We have a preliminary agreement with Diamundi Pte, but this is a commercial secret. We form a pretty big long-term contract for a certain amount, which will be implemented months, as needed, the volume of supplies under the contract may be increased”, – he explained.
Trades in the sandbox
Last week, Deputy Prime Minister, presidential Plenipotentiary envoy in the far East Yuri Trutnev held a meeting with representatives of the Central Bank, Finance Ministry, VEB, where he discussed the possibility of creating in the far East of a “ground” for the formulation of regulatory approaches and running technology trade scriptactive, told TASS Alexey Chekunov. According to him, the Russian government understand that it is impossible to remain aloof from new trends and technologies in the industry, but it is necessary to protect Russian citizens from speculative risks. At the same time to test the new tools you need to practice “making the real deal making momentum.”
“ALROSA” in the framework of the WEF diamond sold for $14.8 million, diamonds $1.7 million
ALROSA intends in 2017 to implement through EATS products at $70 million
ALROSA auctioned at the EEF diamond 75.75 CT
“Regulatory will is there, the government understand what it takes to run the so-called regulatory sandbox, which will be a minimum of barriers need to spend a few locations in the manual mode to learn how it works, assess risk, calibrate. Then, the new regulatory mechanisms will be implemented to the extent that, as will be assessed in practice emerging risks,” said Chekunov.
At the same time, he added, “the government has a strong opinion that across the country to do this prematurely,” and the experimental “the site” will need to be applied mechanisms to protect retail investors, “but to run in regulatory practice will be real trading, not in simulation mode”. According to him, the Fund expects that this “range” will be launched before the end of the year, and basic decisions to start experimental work “Sunrise” with scriptactive needs to be agreed by November.
Auction under the supervision
The head of the Fund reminded that in August 2017, the Central Bank registered the clearing rules allowing the use of “Sunrise” for operations on digital assets, including scriptactive. “The rules of the clearing was entirely according to the standards of the Central Bank, according to the international standards of the FATF. “Sunrise” [the pilot project] will carry out KYC (know your customer – identification procedure of the identity of the counterparty prior to the transaction – approx. TASS) in relation to its customers. Will the proposed mechanisms for the protection of participants, especially unskilled retail investors, citizens of Russia, from the speculative risks of this environment,” he said.
According to the President of the Association of participants of the financial market “non-commercial partnership for the development of financial market RTS” Roman Goryunov, “the rules of the clearing was enough to start the treatment of electronic assets”, but the exchange is holding consultations with the Central Bank about what kind of design monitoring pilot bids for it will be the most comfortable.
“In respect of “Sunrise” we propose to create a Supervisory Board, which would include the maximum number of representatives of government agencies and market participants to effectively work out the rules of the site. We proposed to create it: next week will draft provisions on Board, and we will continue to fill it with specific tasks. We see the role of the Supervisory Board in determining the products that will be allowed to enter “Sunrise”, to including to minimize risks of investors, and continue to look at regulatory limitations that may be needed,” – said Goryunov. At the same time, he stressed that it is only a proposal to the Central Bank, discussion with the regulator as to the appropriateness of such a model, while continuing: “Not to say that consensus on this point has been reached”.
According to Goryunova, for the experiment on “Sunrise” will select projects that carry minimal risks, which is the ICO Diamundi Pte, where the tokens D1 secured by the value of diamonds. “With the launch of similar products by using practical experience to develop a reasonable regulatory framework which on the one hand to assume the necessary investor protection, on the other, will allow, in principle, to create and sell these new products,” he said.
The “tokenization” of the economy
The head of the FRD expressed confidence that the new tool will be popular, as will “allow investors to diversify their portfolios and to get away from the standard channels of currency flows, for example from the dollar system”. A cryptocurrency secured by diamonds, he said, “this is probably the first sane cryptostroma, which is the real certified precious asset from financial market professionals”.
“If this experiment succeeds, we will launch a program on “tokenization” valuable resources of the Far East. In the future we can talk about the spread of such a mechanism in all of Russia,” said Chekunov. In his opinion, it would attract “huge flow of investment not only for the already mined resources, but also to proven resources that have to be learned”. This “tokenization” fine “lends itself to the gold, hydrocarbons, timber, rare earth metals,” said the heads FRD.