Russia has changed its approach regarding the establishment of a regulated national cryptocurrency exchange. Instead of pursuing a single exchange, they now aim to regulate multiple crypto trading platforms.
According to Anatoly Aksakov, a member of the State Duma, Russian lawmakers have abandoned the plan to create a national crypto exchange that was introduced in November 2022. Initially, there were considerations of launching a unified crypto exchange in collaboration with the Moscow Exchange. However, the latest development indicates that Russia intends to establish regulations governing the creation and management of crypto platforms, as reported by the local news agency Izvestia on May 29. The Ministry of Finance in Russia was among the authorities that did not support the proposal for a national crypto exchange.
Aksakov, who leads the Duma’s financial markets committee, emphasized the significance of crypto exchanges in facilitating cross-border transactions for Russian businesses. Additionally, these exchanges would allow local firms to evade sanctions, although this might lead to restrictions being imposed on such platforms.
In response to potential limitations, Russia plans to continue developing new crypto platforms and organizations. Aksakov stated that the primary objective would be to regulate this process effectively.
Central Bank of Russia Will be Central Regulatory Body
Aksakov suggested that the Russian central bank is expected to assume the primary regulatory role in overseeing cryptocurrency exchanges. He noted that the corresponding regulatory framework would be included in the bill concerning experimental legal regimes.
According to Alexey Guznov, the deputy governor of the Bank of Russia, it is premature to discuss traditional cryptocurrency exchanges in Russia. Instead, these platforms would likely function as entities that facilitate coordination between exporters and importers to enable cross-border transactions. For instance, they could assist Russian companies in making payments for parallel imports.
Reportedly, major Russian crypto companies have expressed opposition to the creation of a national cryptocurrency exchange. Their preference lies in establishing a regulatory framework for such organizations. By implementing a new regulatory mechanism, the aim is to minimize the risks associated with sanctions and cyberattacks on infrastructure, as well as address concerns related to market dominance. Oleg Ogienko, a compliance executive at BitRiver, proposed that crypto exchanges should initially impose restrictions on unqualified investors on their platforms.
