With this bill, the Moscow Exchange (MOEX) will allow custodians to issue receipts for digital financial assets (DFA). It remains to be determined whether crypto assets will be sold through brokers or directly to the end buyer.
The Moscow Exchange is the largest marketplace for Forex and equity trading on Russian territory. Most domestic investors deal with the Moscow floor when buying shares of Russian companies, gold and oil futures. And, of course, when buying and selling dollars and euros at a bargain price.
Custodians will be able to accumulate crypto
On the other hand, the demand for crypto assets and related services continues to grow, and many countries find their own ways to meet this demand. Among them is Moscow Exchange (MOEX), which is also taking matters into its own hands to become the country’s own cryptocurrency exchange.
Indeed, the management of the Moscow Exchange wants to issue receipts for CFA. It has sent the corresponding bill for consideration by the Bank of Russia and the Ministry of Finance.
According to a report by the daily Vedomosti, the bill is currently at the mercy of the Central Bank, which will decide whether or not Moscow residents will appreciate both forms of crypto offerings.
As stated by the chairman of the supervisory board of the exchange, Sergey Shvetsov, the bill will allow the issuance of a receipt for crypto assets. These receipts can be used and traded as securities for those who are not comfortable with the custody risks associated with association with a distributed ledger.
The second offering will be the direct release of crypto-assets, as Shvetsov explained that MOEX would appeal to regulators to receive exchange operator status and eliminate the need for a third-party operator.
Commenting on the same, Shvetsov explained,
We want the market to make its own choice, blockchain accounting or custodian accounting, and if the law is passed, Russian custodians will be able to accumulate DFAs on their accounts in the blockchain – as soon as the client needs the underlying asset, they will pay back the receipt and receive the asset on their account in the blockchain.
If the bill prepared by the Moscow Stock Exchange is adopted, custodians will be able to accumulate tokens on the blockchain and issue receipts related to the innovative instrument to customers.