Russia has abandoned its plans to build a national crypto exchange, according to a report first covered by news outlet Izvestia. The report stated that the country would pursue creating a regulatory framework that would foster the establishment of privately run crypto exchanges.
The head of the State Duma committee, Anatoly Aksakov, revealed the decision to discontinue plans for a government-managed crypto exchange on Monday, citing that multiple digital asset platforms would further enhance cross-border transactions. The Russian Ministry of Finance also consented to the idea, noting that the move would drive competitiveness in the sector and reduce sanctions risks.
In November 2022, Russia announced plans to roll out a national crypto exchange, and the central bank would oversee its operation. This has come after the Deputy Minister of Russia, Aleksey Moiseev, termed cryptocurrencies “impossible to do without “ in cross-border trade settlements.
Incoming Regulatory Framework?
With the latest twist, Russia could be all but set to adopt a clear regulatory framework for digital assets. The East Asian country will roll out new regulations for crypto exchanges in the country and has already stressed strict compliance from would-be-licensed platforms.
According to initial plans, the deputies were already drafting a law termed “Digital Financial Asset,” which was supposed to debut this quarter of the year. Lawmakers will now look to new rules to regulate the expected crypto exchange poll.
Central Bank Will Regulate Crypto Exchanges
Aksakov stated that the Ministry of Finance had chosen the central bank to regulate the affairs of crypto exchanges and will do so according to the draft law on the experimental legal regime. The Ministry of Finance strongly believes that crypto activities in the country must be regulated to protect investors from bad actors in the digital asset industry.
The Finance Ministry also looked to legalize crypto mining in the country. Russia is already one of the world’s largest crypto miners due to its coal-rich climate and low energy costs. It would now seek to harness this new crypto-friendly environment to evade sanctions.
