Russia Reverses Decision: Abandons Plans for National Crypto Exchange

Share IT

Key Takeaways:

  • The creation of a national cryptocurrency exchange has been shelved by Russian officials, who will now concentrate on regulating private-sector alternatives.
  • The development of a national cryptocurrency trading platform in Russia was announced in November 2022.

Russia’s intentions to establish a national cryptocurrency exchange are no longer being pursued. Instead, it will concentrate on creating regulations that will let private corporations set up such businesses.

A government-announced idea to increase the company’s tax collection, the development of a state-owned cryptocurrency exchange, is no longer being considered by Russian lawmakers. On May 29, Anatoly Aksakov, the chair of the State Duma committee on the financial industry, made this information public. 

The Ministry of Finance in Russia had voiced internal opposition to the country’s decision to build a state cryptocurrency exchange. The MPs want to develop a legal framework that would let private businesses launch cryptocurrency trading platforms that would be supervised by the Russian central bank. Since the exchanges may be used to evade penalties, Aksakov claims they would be subject to local laws. 

The private cryptocurrency exchanges, according to the article, will permit cross-border settlements and get over some of the financial restrictions put in place by the West against Russia as a result of its invasion of Ukraine last year. According to Aksakov, regulations for these exchanges are anticipated to be developed by the end of 2023 and laid forth in a draft law.

After opposing the establishment of a state-level cryptocurrency exchange because it thinks such assets should be thoroughly controlled, Russia’s Ministry of Finance made a U-turn. The development of a national cryptocurrency trading platform in Russia was announced in November 2022, not long after the FTX debacle. According to Aksakov, Izvestia, the country’s legislators were drafting an update to the statute “On Digital Financial Assets,” which was slated to be adopted in Q2 2023.

Ivan Chebeskov, the director of financial policy at the Ministry, said that the department reached an agreement with the central bank to regulate cryptocurrency mining operations and permit the use of cryptocurrency in cross-border payments. He added that the department preferred regulating businesses running these exchanges and digital assets.

As the digital ruble project advances through Russian parliamentary hearings, legislators have proposed significant amendments to the law to revise the original wording regarding debt operations, services for non-residents, and the role of the central bank. Prior to the bill’s second reading on May 22, the State Duma’s Committee on the Financial Market produced a list of suggestions regarding the virtual ruble.

By choosing 14 participants for its Central Bank Digital Currency trial, the Central Bank of Brazil recently took a big step towards examining the world of digital currencies. The purpose of the pilot program is to evaluate the viability and potential advantages of a digital currency that would be issued and governed by the nation’s central bank.

Share IT

Get Daily Updates

Crypto News, NFTs and Market Updates

Claim Your Free Trading Guide

Sign up for newsletter below and get your free crypto trading guide.

Can’t find what you’re looking for? Type below and hit enter!