Russia Drops Plans to Establish State-Owned Crypto Exchange: Report

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Consider regulation of private virtual currency exchanges

Russia has dropped plans to set up a state-run cryptocurrency exchange. Instead, it is considering introducing rules to regulate cryptocurrency trading platforms. Local media iz reported on the 29th.

Anatoly Aksakov, a member of the Russian parliament and chairman of the Financial Markets Committee, said:

Since cryptocurrency exchanges are used for cross-border payments and can be used to circumvent sanctions, new restrictions could be initiated on these exchanges.

In November last year, the Russian parliament was reportedly discussing legislative changes to establish a state-owned cryptocurrency exchange. At that time, a member of the Russian Economic Policy Board said, “Cryptocurrencies are circulating outside of national regulations, and billions of yen in tax revenue are being lost.”

A bill has also been reportedly drafted to allow the Moscow Stock Exchange (MOEX) to handle digital financial assets and securities based on them.

connection: Russia establishes a national virtual currency exchange = news

Planning to build an experimental legal regime

According to this report, it was the Russian Ministry of Finance that opposed the establishment of a state-owned cryptocurrency exchange.

According to Ivan Chebeskov, head of the Russian Finance Ministry’s monetary policy department, the ministry did not support state-owned cryptocurrency exchanges, instead proposing to regulate trading platforms built by private companies.

Cheveskov said the Ministry of Finance should also consult with the central bank of Russia to give cryptocurrency mining a legal basis and allow international payments and exchange transactions using cryptocurrencies under an experimental legal regime. He also said that he agreed to

Alexei Guznov, Deputy Governor of the Central Bank of Russia, said that cryptocurrency trading platforms in Russia could function more as an entity coordinating interactions between exporters and importers in the context of international transactions, rather than regular exchanges. I’m talking expensive.

For example, it could help Russian companies pay for goods imported from abroad, he said.

Market participants also agree with the policy of creating rules for cryptocurrency exchanges rather than establishing a national exchange.

It has been pointed out that by doing so, it is possible to reduce the risk of cyber-attacks on the trading infrastructure and the imposition of sanctions, and the market will not be monopolized.

Aksakov said that for now, central banks are likely to be in charge of regulating cryptocurrency exchanges. The rules will be spelled out in a draft law on experimental legal regimes around cryptocurrencies.

Also working on CBDC

Russia is also working on a Central Bank Digital Currency (CBDC). The head of the Russian central bank, Elvira Nabiullina, said in March that real transactions using the digital ruble were expected to begin sometime in 2023.

It also said it is considering using the digital ruble for international payments.

connection: Deputy Speaker of the Russian House of Representatives “Russia, China and India should develop a new common currency system”

What are CBDCs

A digital currency issued by the central bank of a country or region. It stands for “Central Bank Digital Currency”. The big difference from virtual currency is that CBDC is a legal tender. While it is expected to reduce costs and improve efficiency in currency management and settlement, there are many issues to be considered, such as protection of personal information and privacy, security measures, and impact on the financial system.

Cryptocurrency Glossary