Moscow Exchange Suggests Issuing Crypto Receipts for Those Afraid of Blockchain – Exchanges Bitcoin News

Moscow Exchange proposed legalizing the issuing of digital asset receipts. This will enable custodians who do not have the necessary skills to work with distributed ledgers, to provide services to clients. MOEX is also planning to be a licensed operator of crypto-exchanges.

The largest Russian stock exchange prepares to enter the digital asset market

Russia’s largest exchange for derivatives and equities has proposed new legislation which would allow banks to issue receipts for digital assets. In current Russian law, the broad term ‘DFAs’ encompasses cryptocurrencies in the absence of a more precise definition, but mainly refers to digital coins and tokens that have an issuer.

According to Sergey Shvetsov (head of supervision board at the Moscow Exchange), DFA receipts could be traded in securities under such an arrangement. During the latest edition of the International Banking Forum, the official emphasized that the exchange “will naturally enter this market” and stated:

This project allows you to issue digital asset receipts, which can then be circulated in securities.

MOEX already submitted the relevant bill to the Central Bank of Russia. The Ministry of Finance will then coordinate the effort. Shvetsov said that the legislation would allow those not comfortable working with distributed ledgers or who fear custodial risk to be able transfer these risks to become able to issue securities.

“In order for DFAs to develop, we want to propose that the market itself makes the choice – blockchain accounting or depositary accounting,” he further elaborated, reminding the audience that the Moscow Exchange also wants to obtain a license from the CBR to operate as a digital asset exchange. MOEX had announced in August that they would be launching a DFA product before the end of this year.

“If such a law is adopted, Russian depositories will be able to accumulate DFAs on their accounts in the blockchain and give receipts against them to their clients. As soon as a customer needs the underlying asset, he would cancel the receipt and receive his digital asset on his blockchain account,” Shvetsov was quoted as saying by the Prime business news agency.

Support has been growing in Moscow to permit the use of digital assets such as cryptocurrencies for international settlements amid sanctions, while it’s still unclear if regulators will allow their free circulation inside the country. The head of Russia’s Financial Market Committee stated that Russia needs to create its crypto infrastructure. Anatoly Aksakov, a Russian stock exchange representative, recently stated that Saint Petersburg and Moscow are prepared to offer it.

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Blockchain, Cryptocurrencies Cryptocurrencies Cryptocurrencies Cryptocurrencies Cryptocurrencies DFAs Digital Assets Equities, Exchange Legislation moex moscow exchange receipts Russia, Russian Securities

Do you expect the Moscow Exchange to become a major player in Russia’s crypto market? Please comment below with your views.

Lubomir Tassav

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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