The cryptocurrency market in Russia has received its first draft regulatory acts: the Bank of Russia has outlined basic conditions for organized trading of digital currencies and digital rights, and has also proposed requirements for new infrastructure participants.
How Organized Trading Will Be Arranged
The rules for trading digital currencies and digital rights are planned to be established at the exchange level. The exchange itself will determine the procedures for working with such instruments, as well as calculate their market and weighted average price.
For market participants, this is an important step toward a more understandable infrastructure. Cryptocurrency, including Bitcoin, has long been perceived not only as a currency for settlements, but also as an instrument around which investments, accounting, storage, and exchange are formed.
Digital Depositories Will Receive Separate Requirements
The regulator has also prepared requirements for digital depositories. This is a new type of market participant that will keep records of digital currencies and digital rights.
Capital requirements will depend on the functions of the digital depository:
- minimum capital size: from 50 million to 250 million rubles;
- key factors: working with open distributed ledgers and participation in settlements based on trading results.
The digital depository’s own funds must consist of liquid assets. If financial assets are included, they must meet high credit quality requirements.
Settlement and Accounting of Digital Assets
Similar requirements are proposed for operators of electronic platforms. Their functions will be performed by information system operators, who will be able to conduct settlements for digital financial assets through a nominal account.
A separate set of rules concerns the accounting of digital currencies and digital rights. The drafts describe information about depositors, persons who have gained access to the system, as well as the assets being accounted for. In addition, requirements are established for opening and maintaining digital and other accounts.
In terms of operation, a digital depository will be close to a classic depository in the securities market. The difference is that accounting will be conducted specifically for digital currencies and digital rights.
The Register Will Be Maintained by the Bank of Russia
The register of digital depositories will be maintained by the Bank of Russia. All prepared draft regulatory acts have been published for regulatory impact assessment.
The new rules may become the basis for a more transparent infrastructure, in which licensing, asset accounting, tax issues, and settlements will be clearer for market participants. In such an environment, unified requirements can be used by various market participants:
- online digital currency exchange services;
- investment platforms;
- other digital services.
Russia is building its own model for regulating digital assets, taking into account that approaches to cryptocurrencies differ significantly across jurisdictions, including China and the United States of America. As the market develops, technological solutions may also become important, including artificial intelligence for transaction analysis and risk management.
