New Cryptocurrency Trading Market Set to Debut on Moscow Exchange in December

Moscow Exchange Launches Digital Currency Marketplace

Starting December 1, the Moscow Exchange will initiate its first-ever organized digital currency marketplace, in accordance with a new Russian legislative framework. This significant move will allow trading in popular cryptocurrencies such as Bitcoin, Ether, and Tether’s USDT. The exchange announced on Monday that trading will commence with pilot operations as users begin to engage with the platform.

Trading Infrastructure and Regulations

Utilizing its current stock market infrastructure, the exchange will ensure trades are cleared through the National Clearing Center (NCC), providing trading hours from 6:50 AM to 11:50 PM Moscow time.

Initially, the platform will facilitate same-day and next-day settlements, alongside swap transactions. However, to participate in crypto trading, non-qualified investors are required to pass a test, and their purchases will be capped at an annual limit of 300,000 rubles (approximately $3,700) per broker.

Legislative Context and Sanctions

The launch of this initiative follows the introduction of Russian cryptocurrency legislation, which officially came into effect on September 1, allowing regulated trading while still banning cryptocurrency payments for goods and services within the country.

It’s essential to note that both the Moscow Exchange and NCC have faced U.S. sanctions since June 2024, with similar actions from the UK and the European Union occurring in subsequent years.

Market Skepticism

Sergey Mendeleev, founder of the cross-border payments platform Exved, expressed skepticism regarding the anticipated market demand. He voiced concerns that neither global nor local markets would react to this development, particularly due to the sanctions hindering participation on the exchange.

Predicting challenging trading conditions, Mendeleev drew parallels between this new venture and the precious metals accounts offered by Sberbank, where transactions occur without the physical possession of metals. He cautioned that traders might encounter substantial spreads, making it an unattractive opportunity for typical non-qualified investors.

Potential Benefits for Foreign Trade

Despite these concerns, Mendeleev acknowledged the platform’s potential for facilitating cross-border payments, suggesting that a direct trading space for importers and exporters could yield benefits. However, he questioned the necessity of additional intermediaries in a market characterized by tight price negotiations. Mendeleev remains hopeful that this initiative could represent a significant advancement for foreign trade in Russia.