Russia’s Ministry of Finance has put forth a proposal allowing traditional exchanges to facilitate digital asset trading for a select group of investors, as per a report by Interfax on July 10. The government’s draft response to proposed regulations suggests the potential creation of specific rules for conducting organized trading in digital currency, which would be recognized as a commodity. This initiative would be based on either an exchange license or a trading system license. The proposed regulations are intended only for a restricted group of “particularly qualified” investors, but the criteria for qualification remains unspecified.
According to the report, the Russian Central Bank’s register of licenses for exchanges and trading systems lists seven companies that meet the requirements. These companies include well-known exchanges such as Moscow Exchange, St. Petersburg Exchange, St. Petersburg International Mercantile Exchange (SPIMEX), St. Petersburg Currency Exchange (SPCE), Eastern Exchange, National Commodity Exchange, and CTS Exchange. Anatoly Aksakov, the Chairman of the State Duma Committee on Financial Markets, expressed that major Russian exchanges are already equipped to handle crypto transactions and that companies could readily engage in this process given the right legal framework. Some exchanges are reportedly already involved in activities related to cryptocurrency trading.
The government’s response not only addresses the proposed exchange regulations but also touches upon crypto mining and crypto settlements in an experimental legal environment. The new draft emphasizes the formal recognition of digital currencies and the potential for conducting foreign exchange transactions using digital currencies, including utilizing digital assets as a form of payment in international trade agreements. Prime Minister Mikhail Mishustin has instructed Russia’s Ministry of Finance, central bank, and other relevant entities to establish an international crypto payment mechanism by 2022. Legislation may grant the central bank authority to develop an experimental international crypto settlement platform, starting as early as September. The draft response maintains that generalized regulation, rather than specialized measures, could accommodate digital asset payments in foreign trade if the assets are granted official recognition.
In addition to considering stablecoin legalization for international payments, Russia is also exploring the expansion of central bank digital currencies (CBDCs). The country aims to take steps towards integrating digital currencies into the global financial system and facilitating secure and efficient cross-border transactions. The proposed regulations and initiatives highlight Russia’s evolving approach towards digital assets and its efforts to adapt to the changing financial landscape.
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