Russian lawmakers have decided to halt the development of a state-level cryptocurrency trading platform. However, this decision reverses the government’s previous plan to create a state-owned crypto exchange to bolster tax revenue. According to the local newspaper Izvestia, the Ministry of Finance opposed the idea of a national exchange and argued in favor of prioritizing comprehensive regulation of digital assets.
Regulatory focus shifts to private crypto exchanges
Instead of pursuing a national exchange, Russian lawmakers are now focused on establishing a regulatory framework allowing private companies to launch their crypto trading platforms. Russia’s central bank would monitor these platforms. Russia’s shift in strategy is aimed at facilitating cross-border settlements and mitigating the impact of financial sanctions imposed by the West following Russia’s involvement in the Ukrainian conflict.
Anatoly Aksakov, the head of the State Duma’s Committee on Financial Markets, emphasized the priority of regulating the establishment of new crypto platforms and organizations. Aksakov confirmed that rules governing these exchanges would be established by the end of 2023 and detailed in an upcoming draft law. He also highlighted that the private crypto exchanges would allow Russian businesses to engage in cross-border transactions, offering a means to circumvent sanctions.
Russian central bank to oversee private exchanges
The regulatory oversight of these private crypto exchanges is expected to fall under the purview of the Russian central bank. Alexey Guznov, the deputy governor of the Bank of Russia, cautioned against labeling these platforms as traditional cryptocurrency exchanges. He suggested they would likely function as organizations facilitating interaction between exporters and importers, primarily assisting with cross-border transactions and services such as parallel imports.
Furthermore, the Ministry of Finance and the central bank reached a compromise, bringing crypto mining activities under regulation and allowing the use of cryptocurrencies in international payments. Ivan Chebeskov, the director of financial policy at the Ministry, stressed the importance of regulating businesses operating these exchanges and digital assets. The move toward private crypto exchanges represents a significant change in Russia’s approach to digital assets, aiming to boost economic activity and navigate the challenges posed by sanctions.
Russia’s decision to halt the development of a national cryptocurrency exchange and focus on regulating private crypto trading platforms reflects a shift in strategy. By facilitating cross-border transactions and providing opportunities for businesses to circumvent sanctions, the government aims to leverage digital assets to stimulate economic growth. Also, the regulatory framework for these private exchanges, overseen by the Russian central bank, is expected to be crucial in ensuring compliance and promoting a secure environment for crypto trading activities.
