The Central Bank of Russia recently proposed authorizing traditional exchanges to operate in the digital asset market. Industry watchers say the regulator aims to offer investors the ability to trade cryptocurrencies in a controlled environment.
Russian exchanges list digital financial assets, Central Bank of Russia proposes
Exchanges and central clearing counterparties may be permitted to facilitate trading in digital financial assets (DFAs), a collective term that includes cryptocurrencies and tokens under current Russian law. The proposal was presented by the Central Bank of Russia (CBR) at a meeting with exchanges, brokers and information system operators, a group of companies that includes crypto platforms.
Representatives of the Moscow Stock Exchange, SPB Exchange, major brokers and operators of information systems that have the right to issue digital financial assets met behind closed doors with officials from the Bank of Russia on Tuesday, Kommersant reported. Discussions focused on the new plan drafted by the CBR to organize trading in DFAs and utilitarian digital rights (UDRs).
Some crypto-related activities in Russia have been regulated by the law “On Digital Financial Assets”, which came into force in January 2021, including issuance of digital coins (digital financial assets) and fundraising through tokens (digital rights). However, other operations such as mining and trading, as well as the circulation of cryptocurrencies, remained unregulated. A new law “On Digital Currency” drafted by the Treasury Department aims to change that.
A source from the Russian financial sector who attended the meeting told Business Daily that exchanges and brokers supported the idea of trading digital assets, which would expand the range of financial instruments available to them. At the same time, the operators of the information systems were skeptical about the proposal.
They fear that admitting exchanges to this market will jeopardize the business of digital asset platforms that haven’t had enough time to develop. Their representatives also warn of various challenges, including those related to the implementation of blockchain technologies and the slower pace of operation of traditional exchange platforms.
On the other hand, Moscow Stock Exchange officials welcomed the initiative and said they were ready to discuss it further. “The concept envisages the use of existing stock exchange and settlement infrastructures. This will help concentrate liquidity, which has been confirmed by the global practice of secondary circulation of both fiat and digital assets,” they noted during the talks.
According to Pavel Utkin, a senior attorney at the Parthenon United Legal Center, the Bank of Russia is trying to take control of the circulation of DFAs and turn their trading into something similar to the regular stock market. “Since the regulator lost the battle with the Ministry of Finance to block the circulation of cryptocurrencies in the country, it is necessary to create a platform that will allow controlling the circulation of these assets,” explained the expert.
Do you think the Central Bank of Russia will be able to take control of crypto trading in the country? Share your expectations in the comments section below.
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