Russia abandons state-owned cryptocurrency exchange project

The Russian government gave up on the idea of creating its own cryptocurrency exchange, hand in hand with the Moscow Stock Exchange

Anatoly Aksakov, a member of the State Duma, said the Russian government has abandoned the idea of launching a regulated national cryptocurrency exchange. In November 2022, a plan to create a unified one as part of the Moscow Stock Exchange was put forward, but this proposal will no longer be carried out. Instead, Russia seeks to establish rules for the creation and management of various cryptocurrency trading platforms.

The Russian Ministry of Finance was among the authorities that did not support the creation of a national cryptocurrency exchange. According to Aksakov, chairman of the Duma’s committee on financial markets, these would allow Russian companies to process cross-border transactions and avoid sanctions. However, this would likely trigger restrictions against these platforms.

In response to the restrictions, Russia will continue to create new cryptocurrency platforms and organizations, but the main focus will be on establishing a regulatory framework for this process. Aksakov suggests that Russia’s central bank be the main regulatory authority tasked with supervising cryptocurrency exchanges. The regulatory framework would be incorporated into the Bill on Experimental Legal Regimes.

According to Alexey Guznov, Deputy Governor of the Bank of Russia, it is too early to talk about cryptocurrency exchanges in Russia in the classical sense. These platforms would rather act as organizations that facilitate interaction between exporters and importers to expedite cross-border transactions. These organizations could help, for example, Russian companies to pay for parallel imports.

Major Russian cryptocurrency companies seem to oppose the idea of a national exchange and instead advocate a regulatory framework for these organizations. According to Oleg Ogienko, a compliance executive at BitRiver, a new regulatory mechanism would help minimize the risks of sanctions and cyberattacks on infrastructure, as well as address issues related to market dominance. Ogienko suggests that exchanges should restrict the participation of unqualified investors in the early stages.

K. Tovar

Source: Cointelegraph

(Reference image source: Unsplash+)

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