Authorities in Russia have stated their intention to abandon plans for a national crypto exchange. The move comes as the country shifts its focus toward implementing new regulations for the crypto industry.
In local media, Anatoly Aksakov, Head of the State Duma Committee on the Financial Market explained that exchanges will be used to undertake cross-border settlements. He, however, added that additional limits may be imposed on them. At the same time, other corporations will be permitted to operate regularly, as long as they follow the guidelines.
The news comes shortly after the Russian authorities announced the development of a draft law to make digital assets an official payment mechanism for imports and exports.
Regulatory Oversight by the Central Bank
The report hinted that the Central Bank will likely oversee the work of crypto exchanges in the country. The rules will also be written in the draft law on experimental legal regimes, according to the deputy.
The decision to involve the Central Bank in regulating crypto exchanges signifies a significant step in Russia’s efforts to create a structured framework for the crypto industry. As a key financial institution, the Central Bank is well-positioned to oversee and monitor the operations of crypto exchanges, ensuring compliance with established regulations and standards.
Market Participants Applaud the Decision
Notably, Market players have backed the choice to forego the national exchange in favor of regulated operations. BitRiver’s head of government relations, Oleg Ogiyenko, stressed that this strategy will reduce the risks connected with sanctions and cyber attacks on infrastructure, as well as address concerns about market domination.
He went on to say that some countries have already enacted legislation that governs the activities of crypto exchanges while allowing some room for the business to grow.
Additionally, the Ministry of Finance highlighted that Market players believe that the new concept will help minimize sanctions risks and the likelihood of cyber attacks while also promoting competition.
Lawmakers in Russia Proposed Crypto Regulators
Interestingly, Russian lawmakers have earlier proposed four bills aimed at regulating various aspects of crypto adoption in the nation, which they hope to enact by the end of July.
Aksakov emphasized that these proposals cover issues such as cross-border crypto payments, digital asset taxation, accountability for illicit usage, and crypto mining legislation.