After reconsidering its position on cryptocurrencies following its war effort against Ukraine, Russia is now ready to approve digital assets trading in the region. The largest exchange organization in the country – Moscow Exchange – is planning to offer trading of digital financial assets (DFAs) and securities trading based on a set of bills currently being prepared by the government.
Russian-based Vedomosti newspaper reported that MOEX is drafting the bill on behalf of the Russian Central Bank. While the latter does not have legislative authority, the legislation is currently being reviewed by the agency while in preparation. According to the supervisory board chairman at MOEX – Sergei Shvetsov – the bill will contain provisions for trading in both DFAs as well as DFA certificates that would trade as securities.
If the bill successfully goes through, cryptocurrency platforms and their subsidiaries will have to apply to the financial authorities in the country to receive operational licenses for trading. This news comes after the Head of the Russian Banking Association – Anatoly Aksakov – said it is the best fit for hosting a regulated cryptocurrency exchange while highlighting the importance of an entity that strictly complies with the country’s regulatory requirements.
Moreover, the Bank of Russia was reportedly looking at the possibility of legalizing cryptocurrencies for conducting cross-border transactions in the near future. On the other hand, the United States is on its toes as reports of Russian President – Vladimir Putin – leveraging digital assets to evade economic sanctions continue to emerge.
Recently, the United States’ Treasury’s assistant secretary for Terrorist Financing and Financial Crime – Elizabeth Rosenberg – hinted at this possibility. So far, the U.S. Treasury Department has identified some Russian entities attempting to evade sanctions using cryptocurrency. Twenty-two individuals and two entities were designated for aiding Russia in digitally financing their war effort on Ukraine, earlier this month.
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