Russia abandons plans to create state-run crypto exchange

Russia resolves to regulate existing crypto firms.

A central exchange no longer in the picture.

Russian authorities have resolved to abandon plans to create a state-run crypto exchange, opting instead to ramp up regulations for existing crypto exchanges operating within the country, popular Russian outlet Izvestia reports.

While speaking to Russian-based outlet Izvestia, Head of the State Duma Committee on Financial Markets, Anatoly Askakov, announced this development, clarifying that Russia will focus on creating and regulating privately owned organizations without having an official state actor in the industry.

The new draft currently being worked on by the Russian legislative arm puts Russia’s central bank in charge of regulating private sector actors, with the first set of legitimate crypto exchanges in the country expected by early 2024.

Minimizing the risk of sanctions

Russia-based crypto exchanges saw the move as a win, with some key players hailing the decision for its perceived benefits. GIS Mining Commercial Director Ivan Gostev admitted that the move opens the market for innovation and healthy competition.

BitRiver Government Relations Director Oleg Ogienko shared similar sentiments, agreeing that the move will “minimize the risk of sanctions, cyber-attacks on infrastructure and eliminate possible market monopolies.”

Russia still undecided about cryptocurrencies

The issue of digital assets in Russia has been a mixed bag, with the country showing both positive and negative sentiments toward the novel technology. The country’s central bank once proposed an outright ban on crypto payments, resulting in President Vladimir Putin signing a bill that outlaws digital asset payments into law.

Not long after, Russia started exploring the possibilities of bypassing sanctions through stablecoins, even proposing to create a state-run crypto exchange to allow for extensive government regulation.

With the recent Izvestia report, however, it seems like the Russian government will no longer continue with plans to release a cryptocurrency exchange this year. While this sounds like a win for the Russian crypto community, celebrating it would be premature without knowing what regulatory proposals the government has in stock for privately run exchanges.

Author: Raji

Raji Ridwan is a tech blogger and freelance writer. He loves reading and drawing and plays football during his spare time.