Russia Abandons National Crypto Exchange Plans in Favor of Regulation for Multiple Platforms

May. 29, 2023
Russia Abandons National Crypto Exchange Plans in Favor of Regulation for Multiple Platforms

The goal of creating a national digital currency exchange has been abandoned by Russia. The main focus will be regulating various crypto trading platforms instead. Anatoly Aksakov, a member of the State Duma, announced that they would abandon the idea of a cooperative exchange.

According to him, the proposal went unsupported by the Ministry of Finance and other authorities. The innovative tactic seeks to establish directives for building and controlling digitized asset platforms. Its objective is not to unite them under a sole exchange.

Russia’s Shift Towards Regulating Crypto Trading Platforms

Izvestia, a local news agency, has reported a change in the strategy of the Russian government. To aid cross-border transactions for Russian businesses, Aksakov recommends regulating crypto exchanges as he leads the Duma’s financial markets committee.

The country’s economy could be potentially boosted. Assisting them in evading potential sanctions on these platforms is also possible. He emphasized the importance of creating new crypto platforms and organizations while ensuring we adequately regulate the process.

Aksakov also indicated that the Russian central bank is expected to be the primary regulatory authority overseeing cryptocurrency exchanges. Alexey Guznov, the deputy governor of the Bank of Russia, offered insights into the country’s evolving definition of digital asset exchanges.

Rather than functioning as traditional exchanges. Guznov suggested that these platforms would serve as organizations facilitating interactions between exporters and importers, particularly for cross-border transactions.

For instance, they would assist Russian companies in making payments for parallel imports. This shift in perspective reflects Russia’s changing landscape of digital assets regulation.

 Opposition from Major Russian Crypto Companies

Major Russian digital asset companies have reportedly opposed the idea of a national crypto exchange. Instead, they have advocated for a regulatory framework for crypto organizations.

Oleg Ogienko, a compliance executive at BitRiver, explained that a new regulatory mechanism would mitigate risks related to sanctions and cyberattacks on infrastructure.

It would also address concerns regarding the dominance of certain players in the market. Ogienko emphasized the importance of restricting unqualified investors from accessing crypto platforms, at least in the initial stages.

Experts within the crypto industry have doubts about establishing a unified crypto exchange in Russia. David Lesperance, the founder of Lesperance & Associates, pointed out that such a concept would not have been well-received by the digital assets community in the country.

He highlighted the potential implications of government oversight, including issues related to taxation and personal freedoms. Lesperance argued that users would seek alternatives to national digital assets exchange to avoid potential repercussions.

The decision to abandon plans for a national crypto exchange in Russia comes amidst ongoing efforts by the government to develop legislation targeting the digital assets industry. The country is also working on a bill introducing a central bank digital currency.

These developments indicate Russia’s evolving approach to digital assets regulation. It recognizes the need for effective oversight while supporting the growth of the crypto ecosystem.

Related Reading | Crypto Exchange Bybit Ceases Operations in Canada Due to Regulatory Changes

Ammar Raza

Associate editor
Skilled in crafting compelling content, with a deep enthusiasm for blockchain technology. I offer precise and easily comprehensible perspectives on cryptocurrencies, decentralized finance, and the ever-evolving landscape. Count on me as a reliable resource to remain informed about the latest advancements in the world of crypto.