Russia’s Ministry of Finance Pushes for Regulated Digital Currency Trading

• Russia proposes digital currency trading for qualified investors on licensed exchanges like Moscow and St. Petersburg.
• Major Russian exchanges, such as the Moscow Exchange, are ready to handle cryptocurrency transactions once legal conditions are set.
• The Ministry of Finance advocates for regulated crypto trading and proposes recognizing digital currencies as commodities for select investors.

Russia’s Ministry of Finance has proposed allowing digital currency trading for a select group of qualified investors on licensed exchanges. This move involves major exchanges like the Moscow Exchange and St. Petersburg Exchange. 

Anatoly Aksakov, head of the State Duma Financial Market Committee, believes these exchanges are prepared for cryptocurrency transactions. He emphasized that once legal conditions are in place, exchanges should begin crypto trading promptly without issues.

Besides, the Ministry of Finance’s proposal allows companies from the central bank’s registry of exchanges to conduct digital currency trading. This registry, maintained by the Bank of Russia, includes recognized and licensed exchanges operating within the country. Currently, the registry includes seven companies: Moscow Exchange, St. Petersburg Exchange, St. Petersburg International Mercantile Exchange, St. Petersburg Currency Exchange, Eastern Exchange, National Commodity Exchange, and CTS Exchange.

Readiness of Major Exchanges

Anatoly Aksakov stated that Russia’s largest exchanges are ready to handle cryptocurrency transactions. He mentioned that these exchanges are already actively working on market development and organization. Hence, once legal conditions are established, they will immediately join the process. Consequently, Aksakov does not foresee any problems with this transition.

Additionally, the Ministry of Finance has included this suggestion in a draft government assessment. This review reviews two legislative bills: one focuses on regulating cryptocurrency mining, while the other explores digital currency transfers through an experimental legal framework. According to Prime Minister Mikhail Mishustin’s directive, different authorities must create a system for utilizing cryptocurrencies in international settlements by the end of 2022.

Special Regulations and Future Plans

The Ministry of Finance suggests establishing special regulations for organized trade in digital currency. These regulations will recognize digital currency as a commodity for a limited group of qualified investors. However, the criteria for classifying such investors are not provided in the document. Additionally, within general regulation, digital currency could be recognized as a currency value. This would allow for currency transactions with digital currencies, including their use as a means of payment under foreign trade agreements.

Significantly, the Ministry of Finance advocates for comprehensive digital currency regulation. Previously, it proposed legalising crypto exchanges in Russia, but consensus with the central bank was not achieved. Therefore, the experimental approach was adopted. Currently, the State Duma is considering a bill that grants the central bank the authority to create an experimental platform for cryptocurrency use in international settlements starting September 1. This marks a pivotal step in Russia’s approach to digital currency trading and regulation.