Key Takeaways
- Sergey Shvetsov, chairman of the MOEX, states that the Exchange will enter the digital financial asset market in two formats.
- The draft bill introduces both DFAs and DFA certificates that would trade like securities.
The leading Russian stock exchange Moscow Exchange is currently drafting a bill to allow trading in digital financial assets and securities based on them.
As per a report by the Russian press, Sergey Shvetsov, chairman of the Exchange’s supervisory board, states that the Moscow Exchange will enter the digital financial asset market in two formats.
MOEX supervisory board chair Sergei Shvetsov said the draft bill seeks to introduce trading in both DFAs/ DFA certificates that would trade like securities. The first offering is that the bill will allow for issuing a receipt for crypto assets.
These receipts can be used and traded as securities for individuals who do not want to deal with the custodial risks of associating with a distributed registry.
Shvetsov adds that the second offering will be the direct release of cryptocurrency assets which will allow the regulators to receive the status of an exchange operator and eliminate the need for a third-party operator.
MOEX will, however, be opting for a centralized structure. Shvetsov adds that this is because people need to be ensured that there is someone that can answer them should something go south.
When you don’t know who to call and who to sue, many people don’t want to participate,” he said, adding, “It’s a blank sheet that we can draw whatever we want on, according to the needs of the economy and investors.”
The draft bill is currently being reviewed by the Central Bank of Russia. In July, Anatoly Aksakov, head of the Russian Banking Association and a financial committee, said that the Moscow Exchange is the best match for hosting a regulated crypto exchange in Russia.
Global stock exchanges are now increasingly becoming popular destinations for digital asset-related products.
Canada’s Toronto Stock Exchange is known for listing the world’s first Bitcoin (BTC) exchange-traded fund in 2021. Deutsche Boerse has also recently launched dedicated digital asset divisions listing several crypto investment products.
MOEX hasn’t had a good run this year. Following the Russian invasion of Ukraine, MOEX was targeted as part of international sanctions against Russia in 2022 and had to suspend all operations for nearly one month.
