Russia is considering a new proposal to regulate the trading of cryptocurrencies through traditional exchanges, as reported by Interfax on July 10. The Ministry of Finance in Russia has put forward the idea of allowing traditional exchanges to facilitate digital asset trading for specific investors. This proposal is part of a draft response to two regulatory pieces, suggesting the creation of special regulations for organized trading in digital currencies, which would be recognized as commodities, based on exchange licenses or trading system licenses.
The plan would limit these licenses or qualifications to a select group of “particularly qualified” investors, without specifying the criteria for qualification. Currently, the Russian Central Bank’s register of licenses for exchanges and trading systems includes seven companies, such as Moscow Exchange, St. Petersburg Exchange, and others.
Anatoly Aksakov, the Chairman of the State Duma Committee on Financial Markets, mentioned that major Russian exchanges are capable of supporting crypto transactions and that companies could potentially participate in this process under appropriate legal conditions. He also highlighted that some exchanges are already involved in activities related to cryptocurrencies.
In addition to the proposal regarding traditional exchanges, the government draft response also addresses the regulation of crypto mining and crypto settlements within an experimental legal framework. The document outlines the recognition of digital currencies and the potential for conducting foreign exchange transactions with digital currencies, including using them as a means of payment in international trade agreements.
Prime Minister Mikhail Mishustin has instructed various entities in Russia, including the Ministry of Finance and the central bank, to develop an international crypto payment mechanism by 2022. Legislation may grant the central bank the authority to establish an experimental international crypto settlement platform starting in September.
Furthermore, the draft response emphasizes that a more general, rather than specialized, regulatory approach could facilitate digital asset payments in foreign trade if these assets receive the appropriate status. Russia is also exploring the legalization of stablecoin usage for international payments and is looking to promote the adoption of central bank digital currencies (CBDCs) in the future.
Overall, the proposed regulations aim to provide a structured framework for the trading of cryptocurrencies through traditional exchanges, while also addressing other aspects of the crypto industry, such as mining and settlements. By integrating digital assets into the existing financial system, Russia seeks to create a more robust and inclusive environment for cryptocurrency transactions and international payments.
