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Moscow Exchange drafting bill on digital financial assets and securities trading: Report

Moscow Exchange drafting bill on digital financial assets and securities trading: Report

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The Moscow Stock Exchange (MOEX) is preparing a bill that would allow trading in digital financial assets and securities based on them, reports the Russian press. The stock exchange writes the bill on behalf of the central bank, which has no authority to issue legislation, Vedomosti newspaper reported on September 22.

Speaking at a banking conference, MOEX Supervisory Board Chairman Sergei Shvetsov said that the bill being prepared will overturn trading in both DFA and DFA certificates that are traded like securities. “The exchange and its subsidiaries will apply to the regulatory authority and I hope they will receive the status of an exchange operator” in order to trade on the DFA, Shvetsov said. He added:

“We want the market to make its own choice between blockchain and custodian, and if the law is passed, Russian custodians will be able to keep DFA on their blockchain accounts – as soon as the client needs the underlying asset, they will redeem the certificate and receive the asset in their account on the blockchain.”

According to Shvetsov, anonymity is an obstacle to distributed ledger technology in Russia. “When you don’t know who to call and who to sue, a lot of people don’t want to get involved,” he said, but “it’s a blank slate on which we can draw whatever we want based on the needs of the economy and investors.”

Related: Disadvantages of Centralization: Moscow Stock Exchange Remains Offline Amidst Ongoing Russia-Ukraine War

Shvetsov said that the bill is currently being considered by the Central Bank of Russia. Anatoly Aksakov, chairman of the Duma Finance Committee and head of the Russian Banking Union, proposed in July that MOEX become a crypto exchange, following the examples of the Toronto Stock Exchange and Deutsche Boerse.

A MOEX spokesperson said in August that the exchange expects to be allowed to trade on DFA. “It is in the interest of our clients,” Artem Zheleznov, director of strategy at MOEX International, said.