Russia Establishes Self-Regulatory Body for Crypto Exchanges and Depositories

On October 29, 2023, the Central Bank of Russia officially recognized the National Association of Securities Market Participants (NAUFOR) as a self-regulatory organization (SRO) for overseeing crypto exchanges and digital depositories. This move is part of Russia's broader efforts to formalize its regulatory framework for digital assets, following the passage of the law "On Digital Currency and Digital Rights" in July.

The registration allows NAUFOR to set industry standards, monitor compliance, and represent the interests of the crypto sector to regulators. Currently, the central bank's registries include 23 crypto exchanges and eight digital depositories, with major financial institutions such as VTB, Sberbank, and T-Bank involved.

Under the new regulations, all registered crypto firms are required to join an SRO within 90 days. This framework aims to enhance market confidence and integrate crypto activities into the traditional financial system. Observers are keen to see how this development will influence market dynamics and Bitcoin price predictions in Russia.

Additionally, the Moscow Exchange is reportedly preparing to test cryptocurrency trading with professional participants, and Sberbank has received approval to custody cryptocurrencies. These developments suggest a significant shift in Russia's approach to digital assets, despite ongoing restrictions on domestic crypto payments.