The Ministry of Finance in Russia has put forward a proposal to allow traditional exchanges to facilitate digital asset trading for a specific group of investors. This proposal aims to create specialized regulations for organized trading in digital currencies, considering them as commodities, based on either an exchange license or a trading system license.
The proposed regulations would only apply to a limited number of “particularly qualified” investors, but the exact criteria for qualification have not been specified. The report mentions that several notable Russian exchanges, including Moscow Exchange, St. Petersburg Exchange, SPIMEX, SPCE, Eastern Exchange, National Commodity Exchange, and CTS Exchange, are already included in the Russian Central Bank’s register of licenses for exchanges and trading systems.
Anatoly Aksakov, the Chairman of the State Duma Committee on Financial Markets, expressed optimism about the potential for major Russian exchanges to facilitate crypto transactions and emphasized the importance of appropriate legal conditions for companies to participate in this process. He highlighted that some exchanges are already engaging in activities related to digital assets.
In addition to the exchange proposal, the government response also addresses the regulation of crypto mining and the use of digital currencies for settlements in an experimental legal framework. The intention is to establish a recognized status for digital currencies and explore the potential for conducting foreign exchange transactions using digital currencies as a method of payment in international trade agreements.
Prime Minister Mikhail Mishustin has instructed relevant entities like the Ministry of Finance and the central bank to develop an international crypto payment mechanism by 2022. This initiative would grant the central bank the authority to create an experimental international crypto settlement platform starting in September. The government’s draft response suggests that mainstream regulations could accommodate digital asset payments for foreign trade if these assets are granted appropriate legal status.
Apart from the proposals mentioned above, Russia is contemplating the legalization of stablecoins for international payments and has ambitions to promote the adoption of central bank digital currencies (CBDCs). These initiatives reflect the evolving landscape of digital asset regulation and the government’s efforts to adapt to the changing financial environment.
Russia’s Ministry of Finance’s proposal to involve traditional exchanges in digital asset trading demonstrates a proactive approach to regulating the digital asset market while also exploring innovative solutions for international transactions. The development of a legal framework for digital currencies and the potential legalization of stablecoins and CBDCs indicate Russia’s willingness to embrace technological advancements in the financial sector.