Russian Government Abandons Plans to Launch National Crypto Exchange

On May 29, the Russian government announced plans to abandon launching the national crypto exchange. The Russian regulators plan to supervise the crypto exchanges in the coming days completely.

In November 2022, the Russian regulatory agencies issued a proposal describing the need to develop a national crypto exchange. The proposal was submitted across the government arms for further review.

Importance of Russian National Crypto Exchange

Afterward, the Russian local government urged the authority to create a unified crypto exchange that would support the operation of the Moscow exchange. An announcement issued by Anatoly Aksakov, a member of the State of Duma, stated that the government had reconsidered the decision to establish a unified crypto exchange. Instead, the authority would prioritize formulating the rules for managing the proposed crypto exchange.

In an interview with the local news site, Izvestia  Aksakov stated that most Russian regulatory agencies demonstrated mixed signals during the previous debate concerning establishing a national crypto exchange. He announced that officials from the Ministry of Finance were among the members who were against establishing the national crypto exchange.

Aksakov, with vast expertise and experience in the financial market, observed that establishing the proposed crypto exchange will boost Russian cross-border transactions. He admitted that the crypto exchange would minimize cases of violation of law, shielding the local firms from facing any administrative sanction.

Why Did Russians Scrap the Development of the National Crypto Exchange?

Irrespective of this, Aksakov noted that with the rise of the crypto-savvy population in Russian more trading platforms would be created. He urged the regulators to adopt an enforcement action to supervise the operation of the local crypto exchanges.

In his speech, Aksakov stated that the central bank of Russia would be mandated to regulate the crypto exchange. Recently the Russian apex bank launched a regulatory framework to support the operation of the national crypto exchange.

In response, the deputy governor of the Bank of Russia, Alexey Guznov, stated that the motion to establish the crypto exchange was inappropriate. He confessed that it was too early to hold advanced talks concerning establishing crypto exchanges in Russia. 

Guznov suggested that the proposed crypto exchanges should be used in cross-border trade to streamline the export and import processes. He mentioned that regional investors could settle for parallel imports more effortlessly by managing the crypto exchange to control cross-border transactions.

In addition, the local crypto firms have opposed the creation of a national crypto exchange in Russia. They have urged the authority to create a friendly environment for crypto by implementing a well-defined regulatory framework. 

In an advanced report, the compliance officer at BitRiver, Oleg Ogienko, argued that the regulatory framework would address cyber attacks battling the digital sector. He urged the government to adopt restrictive measures to flee non-compliant crypto entrepreneurs.

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