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Moscow Exchange Proposes To Issue Crypto Receipts For Those Afraid Of Blockchain – Exchanges Bitcoin News
The Moscow Stock Exchange has proposed to legalize the issuance of receipts for digital financial assets. The trading platform says this will allow custodians to offer clients who are not ready for distributed ledgers to essentially work with securities. MOEX also plans to become a licensed crypto exchange operator.
Largest Russian stock exchange is giving in to enter the market for digital assets
The leading stock and derivatives exchange in Russia has drafted new legislation that will allow depositories to issue digital financial asset (DFA) receipts. In current Russian law, the broad term “DFAs” includes cryptocurrencies in the absence of a more precise definition, but mainly refers to digital coins and tokens that have an issuer.
Under such an arrangement, DFA receipts can be traded as securities, explained Sergey Shvetsov, who heads the supervisory board of the Moscow Exchange (MOEX). During the latest edition of the International Banking Forum, the official emphasized that the exchange “will naturally enter this market” and stated:
We have prepared a project that allows you to issue receipts for digital assets, then these receipts are circulated as securities.
MOEX has already sent the respective bill to the Central Bank of Russia (CBR) and will also coordinate the initiative with the Ministry of Finance. The legislation will give those who are not ready to work with distributed ledgers and are afraid of custody risks an opportunity to transfer these risks and be able to issue securities, Shvetsov added.
“For DFAs to develop, we want to propose that the market itself makes the choice – blockchain accounting or custody accounting,” he further elaborated, reminding the audience that the Moscow Exchange also wants to get a license from the CBR to operate as a digital asset exchange. In August, MOEX announced its intention to launch a DFA-based product by the end of the year.
“If such a law is passed, Russian depositories will be able to collect DFAs on their accounts in the blockchain and issue receipts against them to their clients. As soon as a client needs the underlying asset, he will cancel the receipt and receive his digital asset on the blockchain account,” Shvetsov told the Prime Business news agency.
Support has grown in Moscow to allow the use of digital assets such as cryptocurrencies for international settlements amid sanctions, while it remains unclear whether regulators will allow free circulation in the country. Russia needs to create its own crypto infrastructure anyway, according to the head of the parliamentary financial market committee. Anatoly Aksakov recently said that the stock exchanges in Moscow and St. Petersburg are ready to give it.
Do you expect the Moscow Exchange to become a major player in Russia’s crypto market? Share your thoughts on the topic in the comments section below.
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