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

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

Moscow Exchange, the largest exchange organization in the country, is looking to enable trading in digital financial assets (DFAs) and securities trading based on a set of bills currently being prepared.

• Per a report in the Russian-based Vedomosti newspaper, MOEX is drafting the bill on behalf of the Russian Central Bank. While the latter does not have legislative authority, the legislation in preparation is currently being reviewed by the agency.
• According to the supervisory board chair at MOEX – Sergei Shvetsov – the bill would entail provisions for trading in both DFAs as well as DFA certificates that would trade like securities.
• If passed, the crypto platforms and their subsidiaries will have to apply to the watchdogs in the country to receive operator status for trading.
• The news comes after Anatoly Aksakov, head of the Russian Banking Association, said it is the best fit for hosting a regulated crypto exchange while highlighting the importance of an entity strictly compliant with the country’s regulatory requirements.
• Moreover, the Bank of Russia was reportedly weighing in on the possibility of legalizing crypto for conducting cross-border payments in the near future.
• The US, on the other hand, is on its toes as reports of Russian President Vladimir Putin leveraging digital assets to evade sanctions continue to float.
• Recently, Elizabeth Rosenberg, Treasury’s assistant secretary for Terrorist Financing and Financial Crime, hinted at the possibility of the same.
• So far, the Treasury Department has identified Russian entities attempting to skirt sanctions with crypto. Earlier this month, twenty-two individuals and two entities were designated for aiding Russia in digitally financing the war on Ukraine.