Moscow Exchange Suggests Crypto Receipts Use For Those Avoiding Blockchain

The Moscow Exchange suggested that the issuance of receipts be legalized for digital financial assets (DFAs).

According to the trading platform, this will be helpful for custodians because they will be able to cater to clients who are not comfortable with using the blockchain.

In this way, they will essentially be working with securities. Furthermore, the MOEX is also planning on getting a license to operate as a crypto exchange.

New legislation

New legislation has been drafted by the top exchange in Russia for derivatives and equities, which will enable depositories to issue receipts for crypto assets.

Russian law refers to these cryptocurrencies as digital financial assets (DFAs), as there is no precise definition, but they mostly refer to digital tokens and coins that have an issuer.

The head of the Moscow Exchange’s supervisory board, Sergey Shvetsov said that this arrangement would allow DFAs to be traded the same way as securities.

The official said at the International Banking Forum that the exchange also plans on entering the market. He said that they had developed a project that would help in issuing receipts for these DFAs, which would then be used as securities.

The filing

The respective bill has already been filed by the MOEX with the Central Bank of Russia (CBR) and it will also coordinate with the Ministry of Finance for this purpose.

The legislation is meant to facilitate all those who are not prepared to work with distributed ledgers and are concerned about custodial risks.

They will be able to transfer these risks and issue securities instead. Shvetsov said that for the development of digital financial assets (DFAs), they wanted the market to choose.

They can decide between depository accounting and blockchain accounting. Plus, the MOEX will also get a license to operate as a digital asset exchange from the CBR.

MOEX had initially announced its intention of introducing a product related to digital financial assets (DFAs) by the end of this year in the previous month.

The impact

Shvetsov said that if the proposed bill does get accepted, then Russian depositories would have the option of accumulating digital financial assets (DFAs) on the blockchain in their respective accounts.

They will be able to issue receipts against these DFAs to their clients. If a customer requires the underlying asset, all they would have to do is cancel the receipt.

They will then be able to receive the digital asset in their own blockchain account.

There has been growing support in Russia for the use of digital assets, like cryptocurrencies, to make cross-border settlements, given the sanctions that have been imposed by Western nations.

However, the status of crypto in the country still remains uncertain. Nonetheless, a crypto infrastructure would still have to be developed by Russia.

This was the opinion expressed by Anatoly Aksakov, the head of the Financial Market Committee of the Russian parliament.

He had also added that Moscow’s stock exchanges and those in Saint Petersburg were ready to provide the required infrastructure.