Russia is no longer moving forward with its plans to create a national crypto exchange. Instead, it will focus on formulating rules that will allow private companies to set up such exchanges.
The head of the State Duma committee on the financial market, Anatoly Aksakov, made this known to the local media Izvestiya on May 29. According to Aksakov, the exchanges would be regulated by local regulations, as they could be used to circumvent sanctions.
The report suggested that the exchanges would be regulated by Russia’s Central Bank, which would introduce new rules governing their operations before the end of the year.
November 2022, CryptoSlate reported that Russian lawmakers were working on a draft amendment law that would allow the country to launch a national crypto exchange.
Russia’s crypto stakeholders support the decision
Several crypto stakeholders in the country believe that this approach would benefit all parties.
The director for government relations at BitRiver, Oleg Ogienko, highlighted the risks associated with a single national crypto exchange. Multiple players in the industry, he said, would mitigate the risks of sanctions, cyber-attacks and abuse by a dominant market player.
Ogienko added that access to these exchanges would be regulated to protect traders, and new rules would be put in place for foreign companies seeking to operate within Russia. These laws would protect the security of these platforms and the information of their Russian users.
GIS Mining’s commercial director, Ivan Gostev, also said that regulation of private entities would enable competitive development and innovation within the industry. Gostev also confirmed Ogienko’s view on how to regulate these platforms to protect users.
Anderida Financial Group founder Alexei Tarapovsky confirmed the sentiments. Tarapovsky noted that the crypto exchanges could help Russian companies complete international transactions with crypto under the sanctions imposed by the US and other Western countries.
The Russian Ministry of Finance opposed the national crypto exchange
Russia’s decision to launch a federal crypto exchange was met with internal opposition from the Ministry of Finance.
The ministry’s director of financial policy, Ivan Chebeskov, explained that the ministry preferred to regulate companies that operate these exchanges and digital assets, adding that the department reached a compromise with the central bank to bring crypto mining activities under regulation and crypto use in international payments.
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