Sovcombank has become the first financial institution in Russia to offer loans secured by bitcoin.
A recent CoinDesk report said Sberbank ran a pilot loan in December for mining company Intelion Data. Sovcombank is now launching a full service for individuals and legal entities.
Crypto-backed loans are attracting attention as a way for miners and crypto-holding companies to raise funds despite regulatory uncertainty. Marina Burdonova (마리나 부르도노바), Sovcombank's compliance chief, said, "Bitcoin-backed loans will help customers secure funds for business development without selling digital assets." Russia legalized cryptocurrency mining last November, and only registered companies and individuals receive legal protection.
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Chi-gyu Hwang
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