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Russia has decided to cancel the proposed national cryptocurrency exchange in light of the sanctions imposed by the international community due to the invasion of Ukraine. The initial aim of this exchange was to mitigate some of the harm caused by the sanctions.
However, after careful consideration, the Russian authorities have suspended the project. As an alternative approach, Russia will shift its focus towards developing a regulatory framework that will allow private companies to establish cryptocurrency exchanges.
Anatoly Aksakov, chairman of the State Duma committee on financial markets, disclosed this information to local media.
Aksakov stated,
The exchange will help businesses make cross-border settlements, restrictions may begin to be placed on them. At the same time, a new organization will appear. We agree with this concept in the Ministry of Finance. Market participants are confident: the new mechanism will help reduce the risk of sanctions and possible cyber attacks, as well as support competition.
Central Bank of Russia Will Implement New Regulations for Crypto Exchanges
According to the report, the proposed cryptocurrency exchange in Russia will be subject to the regulations of the country’s Central Bank. It is anticipated that the Central Bank will introduce new regulations governing the operations of this exchange before the end of the year.
The Russian authorities’ current emphasis appears to be on prioritizing compliance. This sentiment is echoed by other lawmakers in Russia who share the view that launching an exchange without set rules would be unwise. Therefore, there is a cautious approach to continuing exchanges until clear regulations are in place.
The Ministry of Finance in Russia has expressed support for the new strategy, despite initially opposing the concept of a national cryptocurrency exchange. While specific details on crypto regulation remain limited, Russia has been actively taking broader steps to enforce regulation within the cryptocurrency market.
As Russia continues to take steps in this direction, more information regarding specific crypto regulations will emerge in due course.
The Russian crypto company advocates for establishing a regulatory framework instead of going after a national cryptocurrency exchange.
Their rationale behind this approach is to mitigate risk, improve cybersecurity measures, and address concerns regarding market dominance. In this regard, suggestions have been made to limit access to cryptocurrency markets for “unqualified investors”.
Oleg Ogienko, Director of Government Relations at BitRiver, highlighted the risks of a single national cryptocurrency exchange, stressing the need for multiple players to mitigate sanctions, cyber attacks and market dominance.
To ensure the safety of traders, regulations will be implemented to control access to these exchanges. In addition, foreign companies operating in Russia will be subject to new regulations aimed at protecting the security of platforms and user data.
Ivan Gostev, Commercial Director at GIS Mining, supports setting up private entities in the crypto industry to promote competition, innovation and user protection. He agrees with Ogienko on the importance of platform regulation to protect the interests of users.
Featured Images From Refinitiv, Charts From TradingView.com
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