Proposal For A Russian Crypto Exchange Circulates In Moscow

The lower house of the Russian parliament is called the State Duma and one of its high-ranking members suggested that the country set up its own dedicated crypto exchange for conducting transactions. Anatoly Aksakov said that the Moscow Exchange could host the new platform. He leads the financial market committee of the parliament.

A domestic crypto exchange

The Financial Market Committee’s head said that the Moscow Exchange (MOEX) could establish a crypto trading platform in the country. Anatoly Aksakov has played an active role in the ongoing efforts in the country in regard to the development of a comprehensive regulatory framework that could oversee these digital financial assets (DFAs).

The official believes that launching a digital asset exchange in Russia is an excellent idea because it would allow it to process all the crypto transactions that are taking place in the Russian Federation. MOEX is the largest exchange in the country, which is used for trading bonds, precious metals, equities, and derivatives. In addition, it also operates the forex market in Russia, along with the central securities depository. Moreover, it is also the largest provider of clearing services in Russia.

MOEX’s shutdown and reopening

On February 24th, Russia invaded Ukraine after which the MOEX exchange shut down its trading operations. Due to the military conflict, the exchange also ended up getting sanctioned by Western countries. It took about a month before the exchange reopened and that too for state bonds.

Aksakov said that they should create a crypto exchange in accordance with the tough requirements of the Russian central bank. He said that it should be made a division of the MOEX exchange. He asserted that this would ensure that the crypto trading platform of the country operates in accordance with the framework of an organization that is respected in the country and also has great traditions.

This is because of the fact that the Moscow Exchange actively interacts with the Bank of Russia and this makes it the best option for coping with the responsibility of crypto transactions.

Legislations for crypto space

The Russian government has been very active when it comes to developing new legislation for regulating the crypto space in the country. Cryptocurrencies have garnered a lot of popularity in the Russian Federation and this prompted the government to take a look. However, the Central Bank of Russia (CBR) proposed a blanket ban on all-things crypto that was rejected by most of government institutions.

A new bill by the name of ‘On Digital Currency’ has been making progress in the State Duma and lawmakers are now set to review the draft that is meant to regulate crypto operations and activities in the country. According to Aksakov, the new law would be a ‘tough’ one, even though the Bank of Russia has recently softened its stance where crypto is concerned. This is in light of the Western sanctions imposed against the country due to its Ukraine conflict, as crypto gives a solution to the country for evading these sanctions.