A Contender for the Status of the First Self-Regulatory Organization for Crypto Exchanges Emerges in Russia
A cryptocurrency exchange association has been registered in Russia, aiming to develop standards for client identification, transaction accounting, internal control, and risk management, as well as approaches to disclosing rates and fees and resolving disputes in this market. It is named the Association of Organizations Engaged in Digital Currency Exchange (AOЦB) and is preparing to obtain the status of a self-regulatory organization (SRO).
On September 1, the founding congress of AOЦB took place at the President Hotel in Moscow, attended by over 100 representatives from the market, government authorities, the National Association of Securities Market Participants (NAUFOR), and the professional community. The meeting discussed the initial standards for industry operations and interaction with the regulator following the enactment of the new law on digital currencies.
As of September 1, the main part of Federal Law No. 282-FZ "On Digital Currencies and Digital Rights" came into effect. The document was adopted by the State Duma on July 21, approved by the Federation Council on July 24, and signed by the president on August 4. The law introduces a separate status for organizations engaged in the exchange of digital currencies into Russian regulation, provides for the creation of a special register by the Bank of Russia, and mandates membership in a specialized SRO for such organizations.
The event primarily discussed the uncertainty that remains among market participants following the launch of the new regulation. Exchanges raised questions about how to operate during the transition period, what requirements they will need to meet from the regulator, and how the new rules will affect the business economy.
Some market participants fear that rising compliance costs and increased oversight will reduce the profitability of the exchange business. Others anticipate the opposite effect: after legalization, the number of market participants will decrease, while the turnover of companies that can operate under the new rules will increase.
"The legal exchange process will only increase revenue, as the final number of players will decrease, and illegal exchanges will face significant challenges, even to the point of issues with the Criminal Code," said the owner of one exchange, who attended the congress but wished to remain anonymous, in an interview with RBC-Crypto.
Participants at the congress assign a key role in adapting the market to the new rules to the future SRO. AOЦB hopes to become a platform for forming a unified position of exchanges in dialogue with the Bank of Russia and other agencies. The meeting outlined the first standards for market participants and the format for interaction with the regulator, and a Board of Directors was elected to continue work after the association obtains SRO status.
"The future SRO will provide the market with what it has long awaited: a real platform for dialogue with the regulator and a joint search for workable solutions. We are confident that this will help exchanges not to fear and to operate openly, calmly developing their business under the new conditions," emphasized lawyer and managing partner of GMT Legal Andrey Tugarin, who was elected chairman of the AOЦB Board of Directors.
The NAUFOR Board of Directors decided to obtain SRO status for the association of operators of information systems, digital depositories, and crypto exchanges and intends to submit documents for SRO status for at least some of these activities in the first half of September, NAUFOR President Alexey Timofeev additionally reported.
"Unlike the new organization, we primarily focus on professional participants in the securities market and specialized depositories that are engaged in or intend to engage in activities in the crypto asset market as well --- they are already members of NAUFOR. We are unlikely to be competitors in this industry," Timofeev clarified.
According to him, subsidiaries of current members engaged in the relevant activities, as well as some exchanges or depositories, may also join NAUFOR.
How Exchanges Are Now Regulated
The law defines the activities of a crypto exchange as the systematic execution of transactions for the purchase and sale of digital currency in its own name and at its own expense outside organized trading. Such activity is considered systematic if two or more transactions are concluded in a month for a total amount exceeding 3.5 million rubles. For an organization that will obtain official crypto exchange status, the law establishes, among other things, a requirement for own funds --- at least 15 million rubles.
However, September 1 is not the date after which all existing exchanges must cease operations without registration. The law provides for a transitional period: until June 30, 2027, residents may systematically execute transactions for the purchase and sale of digital currency in their own interests, in their own name, and at their own expense until they are included in the register of organizations engaged in the exchange of digital currencies.
Separately, the law establishes mandatory membership for regulated crypto exchanges in a specialized SRO. Exchanges have 90 days to join the specialized SRO. The period is counted not from the moment the law comes into effect, but depending on the emergence of the specialized SRO and the inclusion of a specific organization in the register of the Bank of Russia. Thus, the creation of the SRO becomes one of the key elements in launching a new regulated model of crypto exchange in Russia.
-- Price
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