Recently, Russia’s Ministry of Finance put forward a proposal that traditional exchanges should be allowed to handle digital asset trading for a specific group of investors. This proposal, outlined in response to two regulations, suggests the creation of special regulations for organized trading in digital currencies as commodities based on exchange or trading system licenses. The intention is to limit these licenses to a select group of “particularly qualified” investors. However, the exact qualification criteria is not yet defined.
In the Russian Central Bank’s register of exchange and trading system licenses, seven companies are listed. These include Moscow Exchange, St. Petersburg Exchange, St. Petersburg International Mercantile Exchange (SPIMEX), St. Petersburg Currency Exchange (SPCE), Eastern Exchange, National Commodity Exchange, and CTS Exchange. According to Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, major Russian exchanges are capable of handling crypto transactions and companies could quickly get involved in the process once suitable legal conditions are in place. Some exchanges are already making progress in this area.
Government Response and Crypto Regulation
In addition to the proposal regarding exchanges, the government’s response covers other aspects of crypto regulation. This includes addressing the regulation of crypto mining and crypto settlements in an experimental legal framework. The latest draft response also recognizes digital currencies as a legitimate form of trading and opens up the possibility of foreign exchange transactions using digital currencies, including using them as a means of payment in international trade agreements.
Prime Minister Mikhail Mishustin has instructed the Ministry of Finance, the central bank, and other relevant entities to work on establishing an international crypto payment mechanism by 2022. This move could see legislation granting the central bank the authority to develop an experimental international crypto settlement platform from September onwards. The draft response indicates that with the appropriate status, digital assets could be used for foreign trade payments under general regulations.
Russia is also contemplating the legalization of stablecoin usage for international payments and is looking to promote the use of central bank digital currencies (CBDCs). As the digital asset landscape continues to evolve, Russia is exploring different avenues to integrate cryptocurrencies into the mainstream financial system while ensuring regulatory compliance and investor protection.
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