The Bank of Russia has proposed new requirements for the issuance of credit digital financial assets (DFAs), a product that banks offer based on portions of their loan portfolios. The draft ordinance outlines that when issuing credit DFAs, banks must provide investors with detailed information about the underlying loan agreements. This includes the agreement number, loan amount, interest rate, terms regarding the assignment of claims to third parties, and data on the borrower.
According to the Bank of Russia, “Credit DFAs enable an investor to receive payouts relating to payments under a bank’s loan agreement. When purchasing this instrument, the investor undertakes the risk of a loan default that was initially borne by the creditor. Therefore, when issuing credit DFAs, a bank should provide investors with information about the loan agreement, including its number, the loan amount, the interest rate, and the terms concerning the right to assign the claim under the agreement to a third party as well as disclose data on the borrower.”
The central bank believes that such transparency will help investors make better-informed decisions when considering these types of digital financial assets. “This information will help investors make more informed decisions when purchasing this type of DFAs,” according to its statement.
In addition to specific requirements for credit DFAs, the draft ordinance would expand disclosure obligations for all DFA issuances. Issuers would be required to include links to websites where they disclose relevant data and provide references to credit rating agencies if they hold a rating.
A public consultation period for feedback on this draft regulation is open until October 10, 2025.
