According to a report in the Russian press, the Moscow Stock Exchange (MOEX) is working on a draft law to allow trading of digital financial assets (DFAs) and securities based on them. The exchange is writing the bill on behalf of the Central Bank of Russia, which does not have the power to introduce legislation, the Vedomosti newspaper reported on Thursday.
Sergei Shvetsov, chairman of MOEX’s supervisory board, told a banking conference that the draft law under preparation would allow trading of both DFAs and DFA certificates, which would be traded like securities. “The exchange and its affiliates will apply to the regulator and I hope they will get the status of exchange operators” to trade DFAs, Shvetsov said. He added:
“We want the market to make its own choice between blockchain accounting and escrow accounting, and if the law passes, Russian custodians will be able to hold DFAs on their accounts on the blockchain — once the client needs the underlying asset, they resolve that Certificate and receive the asset in their account on the blockchain.”
A lack of familiarity is a barrier to distributed ledger technology in Russia, according to Shvetsov. “If you don’t know who to call and who to sue, a lot of people don’t want to participate,” he said, but “it’s a blank slate for us to draw whatever we want on, according to the needs of business and investors.” .”
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Shvetsov said the draft law is currently under consideration by the Central Bank of Russia. Anatoly Aksakov, chairman of the State Duma Finance Committee and head of the Russian Banking Association, proposed in July to make MOEX a crypto exchange along the lines of the Toronto Stock Exchange and Deutsche Boerse.
A MOEX spokesman said in August that the exchange expects to be allowed to trade DFAs. “It is in the interest of our customers,” said Artem Zheleznov, Managing Director of Strategy at MOEX International.
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