Russia Sets Nov. 22 for Crypto Exchange Trading

Russia’s crypto exchange rules take effect Nov. 22

The Bank of Russia said exchanges must register brokers, trust managers and clearing counterparties, keep records of orders and completed trades, and monitor transactions. They must also calculate benchmarks such as the volume-weighted average and closing prices, and report trading activity to the regulator as they do for other assets.

The rules put the crypto market law that took effect in September into practice for organized trading. The central bank’s overview of that law describes separate roles for trading venues, crypto exchange offices and digital depositories that record rights to assets.

For brokers, the approvals determine when they can route client orders to an organized exchange. The notice says venues will report the progress and results of trading to the regulator through the same process they use for other markets.

In October, the central bank admitted its first digital depositories and crypto exchange offices under transitional rules. Those exchange offices can buy and sell crypto for their own accounts outside organized trading, a separate activity from the exchange markets governed by Wednesday’s notice.

Bitcoin, Ether and USDT make Russia’s retail list

A separate Bank of Russia ordinance takes effect November 17 and identifies Bitcoin, Ether and USDT as eligible for public trading. It finalizes the three-asset lineup from the central bank’s August draft. November 17 is the date the asset list takes effect. November 22 is the earliest date approved exchanges can start organized trading under Wednesday’s rules.

The bank said it used market capitalization, average daily volume and at least five years of pricing history on foreign exchanges to select the assets. Non-qualified investors face an annual purchase limit of 300,000 rubles per intermediary. The limit applies when they buy through brokers, trust managers or crypto exchange offices, including through off-exchange transactions.

The regulator says investors in both qualification categories must pass a test and review the risks before making a transaction. Qualified investors can access a broader range of crypto assets under the framework.

The September law keeps the ban on using cryptocurrency to pay for goods and services inside Russia. It allows regulated investment transactions through intermediaries.

Moscow Exchange targets Dec. 1 for pilot trades

Moscow Exchange said it plans to use its stock-market infrastructure for Bitcoin, Ether and USDT trades. It expects to start with pilot transactions and connect participants as they become ready. Sberbank has also targeted December 1 for its own trading infrastructure and digital depository.

Moscow Exchange listed trading hours of 6:50 a.m. to 11:50 p.m. Moscow time, in line with its stock market. It plans to offer same-day and next-day settlement, along with swaps that participants can use to manage liquidity.

The exchange previously offered qualified investors futures linked to the iShares Bitcoin Trust ETF. The new market would let participants trade Bitcoin itself.

The exchange said the National Clearing Center would clear the transactions. The U.S. Treasury designated the exchange and its clearing center in June 2024. Both Moscow Exchange and the National Clearing Center remain on the U.S. sanctions list.

The Crypto Fear & Greed Index fell to 29 on Wednesday from 32 on Tuesday, with both readings in the Fear range.

The central bank’s notice gave no list of venues with approved trading rules. Moscow Exchange did not identify the brokers that would take part in its first trades or give a date for wider access.