Russian Central Bank Is Reviewing Moscow Exchange’s Draft Bill on Crypto: Report

After reconsidering its stance on cryptocurrencies following the outbreak of war, Russia is now looking to enable provisions for trading in digital assets.

The Moscow Stock Exchange, the country’s largest exchange organization, is looking to allow digital financial asset (DFA) trading and securities trading based on a set of notes that are being prepared.

• According to a report in Russia-based newspaper Vedomosti, MOEX is drafting the bill on behalf of the Central Bank of Russia. Although the latter has no legislative authority, pending legislation is being reviewed by the agency.
• According to MOEX Supervisory Board Chairman Sergei Shvetsov, the bill would involve provisions for the trading of both DFA and DFA certificates to be traded as securities.
• If approved, crypto platforms and their subsidiaries will have to apply to the country’s watchdogs to receive operator status to trade.
• The news comes after Anatoly Aksakov, head of the Russian Banking Association, said it is the best choice to host a regulated cryptocurrency exchange while stressing the importance of an entity that strictly complies with the country’s regulatory requirements.
• In addition, the Bank of Russia was thinking about the possibility of legalizing cryptography for making cross-border payments in the near future.
• The United States, on the other hand, is on watch as reports of Russian President Vladimir Putin leveraging digital assets to evade sanctions continue to float.
• Recently, Elizabeth Rosenberg, Treasury Under Secretary for Terrorist Financing and Financial Crimes, hinted at the possibility of the same.
• So far, the Treasury Department has identified Russian entities trying to evade sanctions with crypto. Earlier this month, twenty-two individuals and two entities were designated for helping Russia digitally finance the war in Ukraine.