The Hermitage Museum in St. Petersburg is considering the issuance of NFTs for the artworks in its extensive collection and is in talks with Binance on the matter. The management of the museum hopes that the token will bring in additional funds, provided that the Russian authorities exempt the NFT from the current digital asset regulations.
The Hermitage Museum and Binance Negotiate on Art NFT
The world-famous Russian State Hermitage Museum is negotiating with the leading cryptocurrency exchange Binance on the issuance and sale of non-fungible tokens (NFT) for artworks. On June 24, Binance launched the NFT market, which contains various forms of digital art and collectibles. The coin trading platform also announced its “100 Creators” program to showcase NFT content from local talents from all over the world.
In order for Hermitage to issue its tokens, Russian legislation governing the industry may require some clarification. According to her statement, Marina Tsyguleva, the head of the museum’s legal department, stated that such tokens may be excluded from the scope of digital asset supervision, as proposed by the Central Bank of Russia. Quoting Interfax News Agency, Tigureva revealed:
We are discussing cooperation with Binance.
The Hermitage Museum hopes to use NFT to attract additional funds. However, it is not clear whether these tokens fall under current regulations. The “Digital Financial Assets” Law is currently the main legislation regulating the encryption field in Russia. It took effect on January 1, 2021, but it does not cover all aspects of the encryption field.
Russia’s digital asset legislation needs to be improved
Encryption experts and even Russian legislators agree that the definition of digital asset law needs to be clarified and refined. It currently allows the issuance and circulation of tokens, also known as “digital rights”, as well as security tokens, utility tokens and stable coins.
Tsyguleva further explained that cultural institutions can only sell non-exclusive rights to their works of art. This will cause certain difficulties when entering the NFT market, but this possibility is not completely ruled out. For example, the representative of the museum added that NFT can be used to raise funds for restoration projects.
According to an announcement issued earlier this year, the Hermitage Museum plans to hold Russia’s first NFT token art exhibition. According to the Royal Bank of Canada, the event will be organized as part of the “Hermitage 20/21” project. The museum stated that the use of irreplaceable tokens is the most relevant agenda for contemporary art.
What do you think of the Russian Hermitage Museum’s initiative to issue NFTs for artworks? Tell us in the comments section below.
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