- DFA receipts may be exchanged as securities as per the proposal.
- Those who aren’t ready to engage with distributed ledgers can benefit from this.
In order to allow depositories to issue receipts for digital financial assets (DFAs). Russia’s primary equity and derivatives market has proposed new laws. Under the lack of a more explicit definition, the word “DFAs” in current Russian legislation embraces cryptocurrencies. However, it primarily refers to digital coins and tokens that have an issuer.
According to Sergey Shvetsov, director of the Moscow Exchange’s (MOEX) supervisory board, DFA receipts may be exchanged as securities under such an arrangement. At the most recent meeting of the International Banking Forum, the official highlighted that the exchange “will naturally enter this market.”
Seeking Licence For DFA Exchange
MOEX has submitted the requisite legislation to the CBR. And will be working in tandem with the Ministry of Finance on this matter. Those who aren’t ready to engage with distributed ledgers. And are wary of custodial concerns will be able to transfer these risks and issue securities thanks to the law, said Shvetsov.
He went on to explain that the Moscow Exchange also wants to seek a license from the CBR to operate as a digital asset exchange. Further adding “In order for DFAs to develop, we want to propose that the market itself makes the choice – blockchain accounting or depositary accounting.” MOEX said in August that it will debut a DFA-based offering before the year was over.
However, it is still unclear whether authorities would allow the unrestricted movement of digital assets such as cryptocurrencies inside the country, despite rising support in Moscow to authorize their use for international settlements in light of sanctions. The chairman of Russia’s legislative Financial Market Committee says the country must build its own crypto infrastructure anyway.
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