The Russian government has decided not to pursue its plans of creating a national cryptocurrency exchange. Instead, the government will focus on drafting rules for multiple crypto exchanges. This news was reported by a local news site, which cited Anatoly Aksakov, a member of one of the chambers of the Russian parliament, as the source of the information.
Using Crypto Exchanges for Cross-Border Settlements
The crypto exchanges that will be established will be used to conduct cross-border settlements, including bypassing sanctions restrictions. However, new restrictions may be introduced against them. Other organizations will also be able to appear, but the most important thing is that they comply with the rules. The central bank will probably regulate the exchanges.
Concerns About Crypto Assets Infecting the Russian Economy
A few days prior to this announcement, First Deputy Chairman of the Bank of Russia Ksenia Yudaeva had expressed her concerns about crypto assets’ potential to infect the Russian economy. She acknowledged that Russian firms needed to use cryptocurrencies in cross-border settlements. However, she insisted that this be done in a way that does not lead to the spread of crypto throughout the Russian financial system.
Progress on Crypto Regulation in Russia
Russian lawmakers had previously devised a plan to create a national crypto exchange in Russia. However, they have now shifted their focus to drafting rules for multiple crypto exchanges. The central bank had initially opposed crypto adoption, but has since softened its stance. The Russian government and central bank reached an agreement last year to regulate crypto, including licensing crypto firms. Two bills are reportedly ready for adoption as early as June.