Moscow Exchange Drafting Bill on Digital Financial Assets and Securities Trading: Report

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The Moscow Exchange (MOEX) is drafting a bill to allow trading of digital financial assets (DFAs) and securities based on them, according to a report in the Russian press. The stock market is writing the bill on behalf of the central bank, which does not have the power to enact legislation, the Vedomosti newspaper reported Thursday.

Speaking at a banking conference, the chairman of MOEX’s supervisory board, Sergei Shvetsov, said the bill in preparation provides for trading both DFAs and DFA certificates that would be traded as securities. “The exchange and its subsidiaries will apply to the regulator and I hope they will be granted exchange operator status” to trade DFAs, Shvetsov said. He added:

“We want the market to make its own choice between blockchain accounting and custodial accounting, and if the law is passed, Russian custodians will be able to hold DFAs in their accounts on the blockchain – once the client needs the underlying, they will issue the certificate.” redeem and receive the asset into their account on the blockchain.”

Lack of awareness 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 get involved,” he said, but “It’s a blank sheet on which we can draw whatever we want, depending on the needs of the economy and investors. ”

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Shvetsov said the bill is currently under review by the Russian Central Bank. The chairman of the Duma’s finance committee and head of the Russian banking association Anatoly Aksakov suggested in July that MOEX would become a crypto exchange, modeled on the Toronto Stock Exchange and the Deutsche Boerse.

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A spokesperson for MOEX said in August that the exchange expects to be allowed to trade DFAs. “It is in the interest of our customers,” said MOEX International Strategy Director Artem Zheleznov.