The decision finally made on Russia’s Crypto Exchange Plans decision to abandon demonstrates a significant shift in strategy.
The Russian government has decided to alter its approach to cryptocurrency exchanges, abandoning its plan to create a national crypto exchange.
Instead, the government aims to establish regulations for multiple exchanges, allowing them to facilitate cross-border settlements.
This strategic shift, recently revealed by Anatoly Aksakov, a member of the Russian parliament, marks a significant change in the country’s cryptocurrency policy.
According to a local news site, Russia’s Crypto Exchange Plans was dismissed to establish a national cryptocurrency exchange.
By allowing multiple exchanges to operate, Russia aims to facilitate cross-border settlements, even bypassing sanctions restrictions.
Central Bank Regulation and Compliance
To ensure compliance with the newly crafted rules, Russia’s central bank is expected to take charge of regulating the crypto exchanges. This move is in line with the government’s intention to maintain control and oversight of the cryptocurrency industry.
The central bank’s involvement will help establish a framework that ensures the exchanges adhere to the defined regulations.
Concerns and Caution Regarding Crypto
The decision to shift focus from a national crypto exchange comes after First Deputy Chairman of the Bank of Russia, Ksenia Yudaeva, expressed concerns about the impact of crypto assets on the Russian economy.
While acknowledging the necessity of utilizing cryptocurrencies for cross-border settlements, Yudaeva emphasized the need to prevent the widespread adoption of cryptocurrencies within the domestic financial system.
Evolution of Russian Crypto Policy
Originally, Russian lawmakers had announced plans in November of the previous year to create a national crypto exchange. Members of the State Duma had started drafting amendments for this purpose.
Notably, Aksakov had also supported the establishment of a central bank-operated crypto exchange. However, the central bank had initially advocated for a complete ban on cryptocurrencies but has since softened its stance.
In a significant development, the Russian government and central bank reached an agreement last year to regulate the cryptocurrency industry. The agreement included the licensing of crypto firms, further solidifying the government’s commitment to establishing a regulated environment for cryptocurrencies. Russian lawmakers have reported substantial progress on crypto regulation, indicating that two bills may be adopted as early as June.
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