The Moscow Stock Exchange prepares a draft law on digital financial assets and securities trading

The Moscow Stock Exchange (MOEX) is drafting a bill to allow trading of digital financial assets and securities based on them, according to a Russian media report. The bourse is drafting the bill on behalf of the Central Bank, which has no power to introduce legislation, reported the Vedomosti newspaper on September 22.

Speaking at a banking conference, MOEX supervisory board chairman Sergei Shvetsov said that the bill under preparation provides for the trading of both ADFs and ADF certificates that would be traded like securities. “The exchange and its affiliates will apply to the regulator and hopefully receive exchange operator status” in order to trade with ADF, Shvetsov said. And he added:

“We want the market to make its own choice between blockchain accounting and depositories accounting, and if the law is passed, Russian depositories will be able to hold ADFs in their accounts on the blockchain: as soon as the client needs the underlying asset, they will redeem the certificate and receive the asset in their account on the blockchain”.

Unfamiliarity is an impediment to distributed ledger technology in Russia, according to Shvetsov. “When you don’t know who to call and who to sue, many people don’t want to participate,” said, but “It is a blank sheet on which we can draw whatever we want, according to the needs of the economy and investors”.

Shvetsov said that the bill is under review by the Central Bank of Russia. Chairman of the State Duma finance committee and head of the Russian Banking Association, Anatoly Aksakov, suggested in July that MOEX became a cryptocurrency marketfollowing the examples of the Toronto Stock Exchange and the Deutsche Boerse.

A MOEX spokesperson said in August that the exchange expects to be allowed to trade ADFs. “It is in the interest of our clients”, said MOEX International Chief Strategy Officer Artem Zheleznov.

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