No products in the cart.
- Latest
- Trending
ADVERTISEMENT
We want the market to independently choose between blockchain and depositary accounting: Chairman
The Moscow Stock Exchange (MOEX) has decided to introduce a bill allowing depositories to issue receipts for transactions in digital financial assets (DFA), Russian newspaper Vedomosti report Earlier this week.
The bill is currently being considered by the Central Bank of Russia and cannot introduce legislation on its own.
MOEX Supervisory Commission Chairman Sergei Shvetsov told reporters at the banking forum “Russian Banks 21st Century” that the bill would allow the trading of both DFAs and securities based on them.
This allows investors to choose between investing directly in DFA or transferring the custody risk of opening an account in a decentralized registry to the accounting infrastructure via securities.
The exchange and its subsidiaries will rely on regulators. I would like them to get the status of an exchange operator. The Chair explained how the direct release of the DFA would work.
Shvetsov revealed that the exchange wants to allow the market to independently choose between blockchain accounting and escrow accounting. If the bill is approved, Russian depositaries will be able to hold DFAs in accounts on the blockchain and redeem the certificates to withdraw the underlying assets whenever a client requests.
Russia’s business and people’s behavior habits are “dragged” into centralized structures, he said, adding that the lack of familiarity with distributed ledger technology is a barrier.
“A lot of people don’t want to participate if they don’t know who to call and who to sue. [but,] It’s a blank slate that you can draw however you like, depending on the economy and the needs of your investors.
In July, Anatoly Aksakov, chairman of the House Finance Committee and president of the Russian Bankers Association, called for MOEX to follow in the footsteps of the Toronto Stock Exchange and Deutsche Brse and become a cryptocurrency exchange.
