Russian lawmakers have decided to end plans for creating a state-owned cryptocurrency exchange, instead planning to create rules and regulations for existing businesses, a Russian news outlet reported. . reported Sunday
Colin Wu of Wu Blockchain the story is ruined on Twitter early Monday morning. she links to a translation in a Russian news outlet explaining that the country’s new focus is to allow private companies to establish crypto exchanges
Russian lawmakers have said they will not go ahead with plans to create a state-level cryptocurrency trading platform. Focusing on the development of rules that will allow private companies to set up such trading platforms, which are managed by the central bank of Russia, set in…
— Wu Blockchain (@WuBlockchain) May 29, 2023
According to the news report, Ivan Chebeskov, Director of the Financial Policy Department of the Ministry of Finance for the Russian Federation, said, “The [Ministry] does not support the establishment of a national crypto-exchange.” The idea, instead, is to “legally regulate the possibility of creating such sites through business.”
Anatoly Aksakov, head of the Russian lower house committee on financial markets, added, “Instead of creating a national crypto exchange, it is planned to establish rules for the construction and operation of such infrastructures.”
He added that crypto exchanges will be allowed to facilitate cross-border payments, although he did not specify which ones, and acknowledged that they may face new restrictions.
Izvestia, the Russian outlet that published the story, reports that the Central Bank will “probably” regulate the work of these platforms, and that the institution will manage international settlements within the country’s regulatory framework.
Many private crypto operators within the Russian Federation were encouraged by the news.
“This will help reduce the risks of sanctions, cyber attacks on the infrastructure, and eliminate possible market monopolies,” Oleg Ogienko of BitRivera cryptocurrency mining operation operating in Russia, said Izvestia. Reinforcing this view, the commercial director for GIS Mining, Ivan Gostev, said that it “will allow more competition and new companies to develop.”
The positive view of the private sector is not surprising, as Russia ranks #137 out of 180 countries in 2022 Global Corruption Indexwhich suggests the need for caution in their noble endeavors.
Russian authorities have been running hot and cold in the digital asset space for years. Early last year, the Bank of Russia an outright ban is proposed of crypto payments, and a month later the Ministry of Finance submitted a proposal for Bitcoin regulations. Later, Vladimir Putin signed a law prohibiting the payment of digital assets, only to be investigated by the country stablecoins as a means of bypass penalties.
Today’s news comes amid ongoing Western-In Tumana Finance penalties against Russia after its invasion of Ukraine. Despite the history of mixed signals, today potentially marks a new chapter in government relations with cryptocurrencies.
