Instead Of Creating A Crypto Exchange, The Russian Government Wants To Regulate Several Crypto Trading Platforms

Russia is considering launching an integrated crypto exchange as part of the Moscow Exchange. (photo: dock. pexels)

JAKARTA - After introducing plans to create a national crypto exchange in November 2022, Russian legislators have left the idea, according to State Council member Anatoly Aksakov. As previously reported, the local government is considering launching an integrated crypto exchange as part of the Moscow Exchange.

However, instead of setting up an integrated crypto exchange, Russia now wants to set rules to create and manage these platforms, according to Aksakov as reported by local news agency Izvestia on May 29. Russia's Ministry of Finance is reportedly one of the authorities that does not support the planned national crypto exchange.

Aksakov, who leads Duma's financial market committee, noted that crypto exchanges will allow Russian businesses to process cross-border transactions. The crypto exchange will also allow local companies to avoid sanctions, which are likely to trigger restrictions on these platforms.

"Russia will continue to create crypto platforms and new organizations," Aksakov said, adding that the most important thing is managing the process.

"Russia's central bank will likely become the main supervisory authority regulating crypto exchanges," Aksakov said, quoted by Cointelegraph. The relevant regulatory framework will be part of a law on the experimental legal regime, he added.

According to the deputy governor of the Russian Bank, Alexey Guznov, it is too early to talk about crypto exchanges in Russia in the classical sense of the word. More likely, these platforms will serve as organizations that coordinate interactions between exporters and importers in facilitating cross-border transactions. "These organizations, for example, will help Russian companies pay for parallel imports," he said.

Russia's major crypto companies reportedly opposed the idea of establishing a national crypto exchange, but instead established a regulatory framework for these organizations.

The new regulatory mechanism will help minimize the risk of sanctions and cyberattacks on infrastructure, as well as address issues related to the dominant position in the market, according to BitRiver compliance executive Oleg Ogienko. He suggested that crypto exchanges should limit unqualified investors on their platforms, at least in the early stages.